ThinkEnergy

Electricity Canada’s President and CEO, Francis Bradley, joins thinkenergy in episode 140. Hear about the shift to sustainable electricity, including the difficulties navigating provincial and federal policies, climate change directives, and funding gaps. Plus how Electricity Canada evolved from a technical exchange club into a national advocate for sustainable energy. From challenges to leading the charge, learn how governments and private sectors are working towards a clean, efficient electricity system. Related links:   Francis Bradley on LinkedIn: https://www.linkedin.com/in/francis-bradley-3617802a/ Electricity Canada: https://www.electricity.ca/ The state of the Canadian electricity industry 2024 Getting to Yes report: https://www.electricity.ca/advocacy/getting-to-yes-the-state-of-the-canadian-electricity-industry-2024/ Trevor Freeman on LinkedIn: https://www.linkedin.com/in/trevor-freeman-p-eng-cem-leed-ap-8b612114/ Hydro Ottawa: https://hydroottawa.com/en    To subscribe using Apple Podcasts: https://podcasts.apple.com/us/podcast/thinkenergy/id1465129405   To subscribe using Spotify: https://open.spotify.com/show/7wFz7rdR8Gq3f2WOafjxpl To subscribe on Libsyn: http://thinkenergy.libsyn.com/ --- Subscribe so you don't miss a video: https://www.youtube.com/user/hydroottawalimited Follow along on Instagram: https://www.instagram.com/hydroottawa   Stay in the know on Facebook: https://www.facebook.com/HydroOttawa   Keep up with the posts on X: https://twitter.com/thinkenergypod Transcript: Trevor Freeman  00:07 Welcome to think energy, a podcast that dives into the fast changing world of energy through conversations with industry leaders, innovators, and people on the frontlines of the energy transition. Join me Trevor Freeman, as I explore the traditional, unconventional and up and coming facets of the energy industry. If you have any thoughts, feedback or ideas for topics we should cover, please reach out to us at think energy at hydro ottawa.com. Hi, everyone, welcome back. On the show before we have talked about how energy is primarily a provincial jurisdiction in Canada, so that means that provinces and provincial governments set energy policy provincial grids are structured both in a regulatory sense as well as a physical infrastructure sense. at the provincial level, we've gone into some detail about Ontario's grid and talked about how it's kind of a distributed grid meeting most electricity customers in Ontario get their electricity from a local distribution company. Not every province is the same in any of those senses. Some are a little bit more vertically integrated, meaning there are you know, maybe a single entity that gets you all the way from generation to distribution. There's different regulatory frameworks. The point is there's a lot of diversity across the country. Now, as much as that is a provincial jurisdiction, there is a role for the federal government to play here at that national level. There are some national policy directions that are important and that impacts energy policy. Climate change is a great example. So the federal government has jurisdiction to set targets and come up with strategies to address climate change for the country. Things that the federal government is doing currently is enacting a clean electricity standard with the goals of decarbonizing electricity generation in the country, so making sure that we stop using fossil fuels to generate electricity on a large scale. The federal government also supports decarbonisation efforts for buildings and for transportation, and they put money into those things. And those efforts impact electricity grids and impact markets. The federal government also has a role to play when it comes to major projects and providing approvals for those projects to move forward. And that includes energy projects. So new generation or new transmission, you know, things that are using land or moving across land, there's a role for the federal government to play there. So enter electricity Canada, the national voice for electricity utilities in Canada. Now, we've talked before about the sort of provincial equivalent that advocates on behalf of energy utilities. This is the national voice here for electricity, utilities, electricity, Canada has been around for over 130 years now. And their focus, at least in the last while has been on federal advocacy. I'm not going to tell you too much about electricity, Canada, because my guest today is going to talk a little bit about that. But just as a primer. So they have recently published their 2024 state of the industry report, which looks at the need to accelerate some of these major initiatives in the electricity sector to keep up with the energy transition that, as we've talked about many times is already underway. It's already happening. And we are just trying to keep up really. So my guest today is actually making his second appearance on the podcast as Francis Bradley, who is the president and CEO of electricity Canada, and has held a number of different roles within electricity Canada as well prior to becoming the president CEO. He also has a number of key positions on national committees and working groups, which are focused on infrastructure, energy and electricity and other related topics. And most interestingly, he also hosts his own podcast, the flux capacitor, which I highly recommend you check out. Francis, welcome back to the show.   Francis Bradley  04:01 Delighted to be here. Thanks for the invitation, Trevor.   Trevor Freeman  04:03 So I know you've kind of given us the background before but electricity Canada has been around for over 130 years now, which is older than our kind of modern, interconnected grid, at least here in Canada. Can you just remind us of the role and the mandate that your organization plays in the electricity sector?   Francis Bradley  04:20 Sure. Absolutely. In fact, somewhere we have a photograph of like the first meeting of what at the time was the Canadian electrical Association at Niagara Falls in 1891.   Trevor Freeman  04:32 Wow.   Francis Bradley  04:32 But yeah, you know, where, where we're at today. So basically, you know, if you turn a light switch on pretty much anywhere in Canada, any province, any territory, everything it took to generate, transmit and distribute the electricity to turn that light on was probably done by by one of one of our 42 members. They're in every single province, every single territory to use the official the official definition you know, Our mandate is to be the national voice for sustainable electricity for our members and the customers they serve. We do this through advocacy through sharing best practices, and, and education of stakeholders and the government. But yeah, our our members are basically the, you know, the 40 odd, biggest companies that generate transmit distributed coast to coast to coast.   Trevor Freeman  05:22 And has that mandate changed over the course of the 130 years, or is it pretty consistent?   Francis Bradley  05:27 No, it's It's actually that's that's an interesting question. It has changed a lot. And it's changed over the time since I've been at the association even and then aimless changed, that this is the third name. I'm on since since I joined the organization. Yeah, when it was first established. As you say, there was a letter A long time ago, 133 years, it was basically a little club for these people that were in this nascent industry who, who would, you know, swap stories about, about what they're doing and how it's working. And even at the time, there was still, you know, debates about should we be doing AC or DC and, you know, the whole, the whole, you know, battle between, between Westinghouse and, and, and, and the other folks, but so, you know, it was initially a technical information exchange organization, when I joined the organization, it was still very much technically focused, would do a big annual conference, we actually had a technical research division, and we do a couple of million dollars of research a year, back then. We then evolved, we, we evolved from the Canadian electrical association to the Canadian electricity Association. And our mandate began to shift away from Duke First off, where we stopped doing technical research and moved away from technical detailed technical information exchange, and increasingly our mandate began to focus on advocacy and and what the what the industry needs and what they what the members require, from an advocacy standpoint. And then in the 1990s, mid 1990s, we moved up into Ottawa because prior to that we'd been in Montreal, we've been in Montreal since the 1930s. Before that, we were in Toronto. So in the 90s, given that the focus had shifted pretty significantly to advocacy, and the principal government that we were seeking to advocate with was the federal government, the office moved up to Ottawa. And then three years ago, the name of the organization was changed from the Canadian electricity Association, to simply electricity, Canada.   Trevor Freeman  07:42 So that's that switch from technical to the more advocacy and policy work. It's really interesting and actually kind of ties into this. This next question, I want to ask you, we've talked on the show before about, you know, how the Ontario electricity sector is structured. And it's complex, to say the least, but that's one of many in Canada, different provinces have different regulatory structures. Energy Policy is primarily provincial jurisdiction. But as you mentioned, the federal government has a say in that as well, especially when it comes to climate change recently. So I'm curious, how do you navigate all those differences and kind of speak with a common voice when you're dealing with so many different regulatory bodies? So many different governmental bodies? What's How do you find that common voice?   Francis Bradley  08:31 Yeah, well, and you know, that that is that is that the fundamental challenge of, frankly, any organization in Canada that's attempting to, to operate at a national level, in a in a sort of domain that's principally principally provincial, but it's kind of even more so with electricity because of the differences in different jurisdictions. And, you know, you've noted that Ontario is complex in terms of the industry structure, it was more complex. When I when I first started in the sector, there were 300 and more than 350 local distribution companies, you know, so there's been a little bit of consolidation,   Trevor Freeman  09:11 we have a paltry 60 something now.   Francis Bradley  09:13 Yeah, well, that's right. Yeah, we're down into only double digits. But at the same time, you know, we also saw, you know, municipal municipal amalgamations that's taken place that have driven some of that, but, you know, so we've seen an evolution here in Ontario. But, you know, there are no two jurisdictions in this country that are the same. So you know, there isn't a like an electricity system in Canada, each province and territory is different, different types of ownership. You know, in some, it's like a private, privately run companies and in other jurisdictions, it's a Crown Corporation. In some like Ontario, it's a hybrid of a mix of different types of ownership. But, you know, there's there are there are crowns, there are municipally owned there are privately owned companies as part of the value chain. And so you know, It results in a pretty disparate system, both in terms of how the sector is structured, and also how its regulated. Because the regulations are different in each and every one of those jurisdictions. And so, you know, this presents us with a huge problem, frankly, and we see it now, in particular, with respect to all of the politics around climate change, because electricity is a provincial responsibility, but we have one level of government, the federal government, providing direction in this space. And then we have another level of government, that the provincial level, you know, reacting to what those national objectives are, we've got multiple regulators across the country offering their own interpretations on what can and cannot be done in this space. And it proves to be a problem, you know, with respect to the challenge to build the infrastructure that's going to be needed to meet our, our, our aspirations, our future aspirations, this complexity makes it very difficult to get things moving and get things done. And, you know, in addition to that, honestly, in the past year, you know, if you look at the relationship between federal government, the federal government and provincial governments, in some parts of this country, it's starting to smell and feel like just raw geopolitics, right. You know, all sides, frankly, on some of these files have have demonstrated the sort of dogmatic posturing that you'd expect between countries, not necessarily between provinces, and a central government and in a confederation. But, you know, the thing is, and I keep going back to this, if you sort of strip out the posturing that we see, the fact is, we actually agree on much more than than the areas where we disagree. And here's an example. You know, if you look at the, the,the provincial opposition in a number of provinces to the Government of Canada's clean electricity regulations, you would think that, you know, we're on completely different pages here. But, you know, if you ignore some of the, you know, saber rattling, and the point scoring, you actually can see that there is general agreement provincially. And federally, that electrification is going to be, you know, the long term solution to our climate crisis. In fact, the only thing that's in dispute is sort of the deadline and the methods that we're getting there. So, you know, there, there are expressions in some provincial capitals, about the clean electricity regulations as the method and you know, and dispute as to whether or not it should be 2035, or a different time frame, but everybody is on the same page of, you know, an aspiration to have a non omitting sort of a clean system throughout the economy by 2050. And so, you know, that's the starting point that we work from, is that, oh, yes, there are certainly disparate views on some of the methods and some of the policies, but objectively, we are all attempting to head essentially in the same direction. We're all heading towards, like this net zero future. It's just a question of, how are we going to get there and, and with the time you're going to be,   Trevor Freeman  13:18 it's interesting to hear you say that, because that's, you know, a couple episodes back, I talked to David Caletto, from abacus, and he was talking about just the general populations opinion on things, and it mirrors that exactly. So it's not just our sort of various jurisdictions and levels of government that kind of agree, where we need to get to, they just don't know how we're gonna get there. They don't agree and how we're gonna get there.   Francis Bradley  13:40 Yep.   Trevor Freeman  13:41 Your average Canadian also agrees with that. Canadians feel that a an electrified energy sector energy system is better than a fossil fuel one.   Francis Bradley  13:50 Yep.   Trevor Freeman  13:51 We just don't agree on how we're going to get there. So yeah, that's great. Great to hear. And that leaves you guys to sort of thread that needle and find the common points and amplify that I imagine.   Francis Bradley  14:00 Absolutely. And, you know, and, and attempt to come up with solutions. You know, given that our principal role is, is is in advocacy, you know, that that means that we're in the public policy, loop solutions business, and trying to attempt to find ways to to, as you say, thread that thread that needle, but also, you know, figure out ways that that we can make sure that we have policies that are supportive of that future that, you know, as you said, even even the polling work that the David Caletto discussed with you. They agree that that's the destination as well. So, like, what's one of the public policy specific initiatives apart from the overall objective that we should be seeking to, you know, seeking to pursue?   Trevor Freeman  14:51 So if I could pick on one of those specific issues, you know, keeping on this theme of regional differences and regional challenges, we have different relationships with the fossil fuel industry in Canada. And that includes both our electricity generation, some of our provinces have predominantly carbon free generation and some don't. And in terms of our economy, so I mean, West fossil fuel is weaved into the economy and a pretty integrated way. How can we navigate this move to cleaner electricity, collectively as a country, knowing that different areas of the country have to do different things to get there, and it's going to impact them in different ways?   Francis Bradley  15:31 Yeah, and it isn't surprising that different parts of the country have a different approach to this, and they're coming from a different starting point. You know, it's kind of the luck of the draw, when, you know, when, when the geography prior to, you know, it prior to prior to anything like this, it was all determined by geography, if you happen to be in a jurisdiction today, that has a lot of water and a lot of different elevations so that the water is falling, you know, you're starting it certainly in a in a in a better place. That, you know, that the challenge overall is to is to really try and figure out how we we make this work across the country? You know, you're you're absolutely right, there are some parts of this country that have historically been very reliant on fossil fuels for the production of electricity. Why? Well, because they didn't have any falling water, or they're relatively flat. And so you know, that that was the certainly the case. And it continues to be the case and the challenge for some jurisdictions, so, you know, take the example of the draft clean electricity regulations that, you know, we've been, we've been talking about, and we're spending a lot of time focused on they, they hit different jurisdictions very differently, this objective to try and reach a netzero grid by 2035 is not a huge stretch, if you happen to be, you know, in in, in Quebec, or in British Columbia, or in Manitoba, it's a lift, but it's not a huge lift. You know, however, if you're, if you're elsewhere, it, it can be quite challenging. So the problem that we have there is, but you know, when the government of Canada began putting together their work on the clean electricity regulations, they use modeling that looked at the national average, and, you know, nationally, they were 84%, non emitting as a country. That's great.   Trevor Freeman  17:31 Right.   Francis Bradley  17:32 But, you know, they really should have taken a hard look at what the differences were between different jurisdictions in the country. And they should have done their modeling that was much more local. You know, Canada is a big, diverse country. And, you know, you hinted at that. So, you know, exactly nowhere in Canada is average. Right, and so we shouldn't be modeling nowhere. Because then that simply doesn't work. You know, and, and the, the simple illustration, I will often say is, if you've got two lobsters, and one of them is in the freezer, and the other one is in the pod on your stove, on average, the temperature is pretty good for the lobsters. But it isn't for either of them, right? Yeah. So, you know, listen, why does this matter? Well, if we get the modeling wrong, and if we don't understand the differences between the different regions of the country, we're going to be making decisions on how to allocate because, you know, we talk about 2050, and what is Net Zero 2050 Looks like, looks like it's going to be, you know, trillions of dollars worth of investments are going to be required. And if they're leaning on models that are not right, that becomes problematic. It's a huge bet that we're making, you know, if the models we base our decision making on and where we're going to be putting our investments aren't accurate. If the regulations are wrong, you know, these clean electricity regulations, because they didn't take into consideration the regional differences. Compliance is going to be expensive. It could in some jurisdictions, you know, make blackouts or brownouts more common with bigger impacts, and it might have disproportionately more significant impact on on the rates in most jurisdictions. So, you know, the reality is, it's four provinces in, in in Canada, that have a starting point with respect to decarbonisation, that's substantially lower than then the rest of the country. They've got much more significant lift if you happen to be in Alberta, Saskatchewan, Nova Scotia and New Brunswick. That's just the reality. So you know, we need to move forward with the with decarbonisation, but we need to be realistic that moving us from what we have today and 84% carbon free system to 100% is going to be far far more complicated than it's assumed. Again, looking at it on a national average, it seems like only a small numbers, you know, we're at 84%. It's not a stretch to 100. Except if you're in a jurisdiction where it's, you know, 10%. Yeah, then it's a problem.   Trevor Freeman  20:09 Okay, so 11 years, we got our work cut out for us. And we'll kind of see how we move forward. A big part of what we're going to talk about today is electricity, Canada's recent report that you've called Getting to Yes. The 2024 state of the Canadian electricity industry. So in the very first lines of the report, you talk about how there's this culture of No. Which is creating these major obstacles to progress. The report highlights that there have been all these funding pledges from the federal government. But projects are not getting off the ground. They're hitting barriers. Can you elaborate on what some of those barriers are?   Francis Bradley  20:48 Sure, absolutely. Happy to. This is, this is something that we've been very focused on since we released a report earlier this year, is is an initiative we do each year, we try and kind of sum up what we see as the most significant challenge for the sector. And, yeah, the challenge for this sector is we need to, we need to figure out how to how to get to yes. This year, earlier this year, we saw the release of RBC, the RBC climate action Institute report that charted this massive growth for electricity, particularly with the rise of electric vehicles, and home heating. But the reports word of the year for the electricity sector is moratorium that because that was, you know, such a significant event, in the past year 2023 was a difficult year, frankly, you know, we've seen some projects that were halted temporarily like that six month moratorium, the pause on renewables in Alberta, we saw some projects, you know, like the Atlantic loop in the Maritimes, that were halted in indefinitely. And, you know, what's moving forward now is, is a piece of what would have been the Atlantic loop, but the Atlantic loop just just hasn't moved forward. So, you know, there, there is a very significant challenge, right now, with respect to being able to ensure that we have the policy frameworks in place. So that we can can get beyond these challenges with respect to moving through the regulatory frameworks. And at the same time, we need to make sure that we get the financing and the financials in place. I mentioned that RBC report, the title of the report, this year was double or treble, they estimate that we should be investing to be able to meet our aspirations, we should be investing at a rate of about $60 billion a year, in clean energy on an annual basis, were investing at a rate of barely 20 billion a year. So we need to more than double, almost triple the investment that we're putting in place to be able to meet those those targets. It's interesting, it's very consistent with the recent plan that Hydro Quebec came up with, to meet its 2035 objectives,  it's estimating that it's going to close, you know, close to triple its capital investment to be able to to meet those. So we're well below what needs to be invested. And part of the problem is, is this, you know, we had a culture of, of no, you know, we we kind of have the technology to be able to do this. And we have, you know, the the financing, there are people who were are willing to invest in this space, because this is a good space to invest in. We have, you know, commitments and agreements in terms of what the overall target is that just that we seem to have set ourselves up with, you know, overall regulatory frameworks, that that slow things down. And by the same token, you know, we're waiting on final details for, you know, some of the financial incentives the Government of Canada has promised, like the investment tax credits, we're still waiting for the final details on that. And, and this is stuff that was promised almost two years ago.   Trevor Freeman  24:12 Yeah. And I mean, these projects are not quick projects, they're not short projects, they take a long time to get off the ground. So every absolutely moment that's lost as an impact. There's a lot to pick apart and what you just said, and I there's a few things I want to pull on that maybe to start with, is anybody getting it right, right now in Canada? That's like a Canada just specifically, is this going well, anywhere in terms of getting projects up and running and off the ground?   Francis Bradley  24:36 Well, our our focus as it associations is at the national level. And so at the national level, no, we're not getting it. Right. You know, there's a number of things that we need to do to be able to improve this and some things that we've been, we've been asking for so you know, like in terms of some some concrete steps at a national level. We need to coordinate federal impact assessments and project permitting through a central federal office. Again, this is something that that has been proposed, but isn't there. Second, we need to build capacity of regulators to deliver on our netzero goals and their decisions. They need to do prompt to so promptly they need to do it effectively. And third, you know, there was a one project, one assessment framework that the federal government promised in budget 2023. And then it promised that again, in budget 2024, that would be great to see that coming forward, like in this year's Federal Budget, it was teased, that, you know, many of the things that we would like to see are going to be addressed. But, you know, how long is it going to take? And, you know, are we actually going to be able to, to see some of those things implemented and implemented in a timely manner are open questions. And I've been I've been in front of parliamentary committees trying to get some of the move forward, some of the budget implementation details like the investment tax credits, move forward, but they we don't have all of the investment tax credit details yet in front of us much less moving them forward. And, and the clock is ticking, you know, that we keep getting closer and closer to to our targets, and we haven't made it any easier to get projects built.   Trevor Freeman  26:32 You mentioned regulatory hurdles as one of those obstacles. What are you talking about when it comes to regulatory hurdles? I mean, like you said, you kind of focus at the national level, there's the provincial level. Talk us through what some of those hurdles are.   Francis Bradley  26:44 Sure. Okay. Well, let me let me let me start with the the Impact Assessment Act, it's it's one of the biggest examples, frankly, of what up until now has been a culture of No, and this isn't a knock on the the individuals involved. It's just how the legislation is structured and how it works. Electricity, infrastructure projects are logistically complex, they require long lead times, they can take years to design to build construct. And that's even outside of the government approval process. At the current rate of regulatory approvals, new projects may take as much as 10 or more years to complete the, you know, the Federal provincial and territorial impact assessment processes, and obtain those relevant regulatory permits from various governments and regulators, you know, in Florida to have like, fully decarbonize, and, you know, double it grid capacity in a little over 25 years. This is going to be a challenge if it's going to take us a decade to get through these these processes. So when we were researching our state of the industry this year, we did a search of the open applications on the impact assessment act's website, what we found is that six projects, including electricity projects have been suspended indefinitely, because the information gathering effort to proceed with the federal Impact Assessment were enough to force a pause on the process. So it's possible that some proponents might reengage with the process, but what we found was that the paper exercise associated just the paper exercise with the impact assessment was enough of a deterrent to cancel or you know, otherwise viable projects, including, you know, in one case building a natural gas and hydrogen fueled electricity generating facilities and hydroelectric facilities. If just the time to go through the Paperchase is so long. This is problematic and something that needs to be addressed now, we're we have a revisions and amendments that have been introduced to the Impact Assessment Act as a result of the Supreme Court decision. I have appeared before parliamentary committee a couple of weeks ago, to speak specifically about that, and in hopes that we're actually going to see this move forward in a more of a timely fashion. But it was made clear by one of the other representatives that was giving evidence to the committee that that their expectation, this is from another province, their expectation is that they will once again be challenging this version of the Impact Assessment Act. So So even that creates further uncertainty. And just the uncertainty, the last thing that the business wants to be able to make generational investments is, you know, a stable, uncertain environment within which to operate.   Trevor Freeman  29:41 So, on that topic of investment, you talk about the need for major investment in both transmission and distribution infrastructure. And just as a reminder for our listeners, that's the poles and the wires and the transformers. That's the real hardware of the electricity system. Those are already really big buckets. So help us understand I got a couple questions around this, you know, what kind of investment are we talking about? Is it building more of those poles and wires? Is there something else in there? What size of investment? I mean, you mentioned $60 billion and clean energy. And who should be making this investment? Who are we looking to hear to be making this investment?   Francis Bradley  30:20 Yeah, I mean, that these are these, these are great questions in terms of what the investments are going to look like. And so, you know, we're looking at, as I said, earlier, doubling, doubling the grid, we're going to need at least two times more kilowatt hours when we get to the future. So you know, that's the level of investment that we need to be thinking about. There have been different organizations that have tried to kind of get a scope and scale of what that actually looks like, again, I mentioned the the RBC climate Institute. Last year, it had a study that came out, and I believe they, they paid this, I think it was $2 trillion, was the was the amount that they expected this to cost. Where's the money coming from? Well, you know, that's a really good question. And it's one that we've been engaging in for a number of years now. And, you know, not to be a little too much. I'll try. I'll try not to be like totally pedantic on this. But, you know, if you, if you consider, from a public policy standpoint, if if we believe that expanding the electricity system is necessary to decarbonize the Canadian economy, then essentially, what you're saying is that expanding the electricity system is a public good. from a, from an economic theory standpoint, if it's a public good, well, then it is something that should be borne by that taxpayer, not the ratepayer. Right. And so, you know, part of this discussion is, who needs to bear the costs for building out a clean non emitting electricity system, so that the rest of the economy can decarbonize? Should it be the electricity customer? Or are there parts of this, this core infrastructure that, that are regarded as a public good, and it's something that is paid for by the taxpayer, you know, and we see this in, in, in other sectors, other sectors as well, where, you know, certain things are perceived to be public good, and they're taxpayer supported. And we saw a bit of a recognition and a realization that this made sense to a degree in the federal government's budget in 2023, where, you know, they essentially pledged, one in every $8, in new spending was going to go to clean electricity projects through a variety of needs, you know, the investment tax credits, the candidate infrastructure bank, a number of funding mechanisms. So I mean, that those kinds of dollars from the federal government was a commitment to building infrastructure that that really is unheard of, at a national level since the Second World War. So you know, it really kind of moved clean energy and electrification into the category of well, I guess it's a public good, because, you know, there's a recognition that if the federal government wants to achieve these policy objectives, it needs to put some federal dollars in there. So, you know, that determination is, and whether it's a public good or not, as has been made in favor of the taxpayer versus the rate payer. Now, again, you know, you could easily say, Well, hang on a second, the rate payer, the taxpayer, the same person, except that it doesn't quite work the same way. We, you know, do do we want to attach to the customers bills, every single customer, that the cost of, you know, this, this expansion of our infrastructure or not, and, you know, electricity bills, are not something that, that, that fall, as taxes do disproportionately on those that are more wealthy. Right. And so, it's a little more fair. Now, you know, in terms of the specific investments, you know, I think, I think exactly how this is going to happen, and how it's going to roll out, those details are still being worked out by by some of our members, but I do want to highlight that, you know, the, the approach here, that we're seeing from the government, which we appreciate, is, you know, a one that is so far technology agnostic, which we think is the right way to go. So, you know, there isn't like a right way or a wrong way to generate electricity. So, you know, the future that we see is going to be an all of the above future, that will encompass wind and solar and nuclear and traditional hydro and, and, and hydrogen and carbon capture and storage. And more, not only does that give us, you know, the greatest flexibility and gives us the ability to to balance different types of generation of dispatchable versus non dispatchable. But it also gives us you know, overall, a far more flexible system. So, you know, That's the what the future is going to look like. So to, you know, to, to give you the short answer, it'll be all of the above, and it'll be probably $2 trillion.   Trevor Freeman  35:08 What's the role of private equity and all of this?   Francis Bradley  35:10 Oh, I mean, it's going to have, it's going to have to play a significant role, that there's no doubt about it. And in fact, that's one of the things that are BC has pointed their finger at when they when they identify the lack of investment right now, in this space, they note that the vast majority of it is public money. And the vast majority of that public money right now is federal public money. And so what they have said is they expect that there's going to have to be significantly more dollars coming from different levels of government, but also from private private investment and private investors as well. And this kind of a, you know, this is good news and bad news on that. I mean, the good news is, you know, their sense is that if we get the economics and the policy environment, right, that it won't be a problem, attracting capital. On the one hand, on the other hand, man, we're competing, you know, we're not an island here, and like, even now, where it's been taking us such a very long time to get the investment tax credit regime in place, and it's not in place yet. Whereas south of the border, the inflation Reduction Act, was developed and rolled out in short order. And what I'm concerned about is that, you know, people that want to invest in clean energy projects, I mean, I don't want to hear the sucking sound of those investment dollars flowing from Canada into the United States. But, you know, there has been more private investment in this space in the US than in Canada, because they've already established the regime that this is going to discuss, you know, production tax credits and, and, and other mechanisms. And we're still working out the details on ours. But yeah, you know, everything that we've heard is, there's a great deal of appetite, so long as we get things sorted out, as long as we get it, right. And that's why, by the way, one of the other things that's interesting for us as an association, is because our members are of, you know, a wide variety of types, a number of my members are investor owned companies. And so, you know, some Canadian companies that have become international players and international leaders, so, you know, Nova Scotia Power, it's now under a holding company called Amera, that is a major player, there's all of the Fortis companies, for US companies are our major players internationally. Afco is one of our members, and they're a big international player, you know, Transalta, again, you know, there's these are very significant players, capital power. So these are all all members of our organization. But it also gives us an ability to kind of get some insight into, into what the business looks like, for private investors as well. And, yeah, you know, what, what we're seeing and what we're hearing us, we need to get the policy, environment and the regulatory environment, right, because that right now is proving to be a barrier. And it's not just not just not not just us saying, you know, they'll see that reflected in other reports, including the RBC report where they talk about these the same sorts of things. And, you know, there's a recent reliability report by the North American Electric Reliability corporation that they've mentioned, as well, you know, one of the risks it sees over the longer term is, is a risk with respect to policy, and lack of policy and bow policy alignment.   Trevor Freeman  38:40 I think I mean, you bring up the inflation Reduction Act, that highlights the value of policy in the setting of the stage to allow for the types of investment and the types of projects that we need going forward and the critical role that governments and policymakers can play there. And actually, my previous guests, and I talked quite a bit about policy. So that's timely. When we talk about these major investments, and you start talking about these major dollar values. You know, you're no stranger to this, I'm sure, electricity prices, the cost of electricity is a sensitive subject and has been for some time now across the country in many different jurisdictions. We often look at as a distribution company, Hydro Ottawa, we look at what we call our social licence. And that's not a term that's unique to the electricity sector, to essentially the the permission our customers give us to operate our business. As we look at these investments, as we look at the amount of dollars that have to be invested in our in our sector and our industry. We know that there's an affordability crisis in Canada right now, lots of people are struggling with cost of living. And those two things can seem at odds. So I want to get your thoughts on how do we continue to hold on to that social licence that we have and in fact grow it and build it because electricity as we know it and your utility as you know it are going to be Change. And how do we get people on board with that, while still making the level of investment that we're talking about here?   Francis Bradley  40:06 Okay. All right. So, you know, I kind of touched on this a couple of times. But know, first and foremost, the energy transition, if you will, as I noted earlier, can't be paid exclusively by the ratepayers right? At be, you know, this is this is an overall objective that we have. And so, you know, the the infrastructure built is so large, that it needs to be certainly parts of it need to be paid through the tax system, and that that is progressive in a way that, that that rates are not progressive to begin with them, you know, but boy addressing vulnerable customers absolutely critical. You know, there's a variety of things that that could be tried, you know, in the United States that there's a Low Income Home Energy Assistance Program, that it helps keep families safe and healthy through initiatives that assist families with energy costs this, I think they call it the LIHEAP provides federally funded assistance, to reduce the costs associated with home energy bills, energy crises, weatherization, and minor energy related home repairs. So you know, a similar initiative in Canada, could be there to assist the the most vulnerable, you know, as as, as you're aware that, you know, your your, your most vulnerable customers are the ones that have the least capacity to do things like weatherization. And so, you know, there's an example of a national program that we could look at as a model. You know, one of the other is let's, let's try not do dumb things at the same time from a public policy standpoint. And one of the areas that we've been lobbying and has been something called the excessive interest and financing expenses limitation, we call it Eifel. And now it is not going to impact your customers, but in some jurisdictions of this country, it is actually going to bite the customer. So this is a this is a change in financial rules that will limit the amount of interest paid interest expenses that can be deducted from taxable income for existing and new borrowings. Now, it sounds complex, but basically every dollar that is denied interest, it winds up getting passed on to the customers, and it increases the cost of capital. Now, it only affects a smaller number of jurisdictions in this country. But you know, in the US and the UK and other countries, they have exemptions for this role. So they don't apply to utilities, but it will apply to to utilities here in Canada. And so like, right now, the only exemption offered to this is for investments in rental housing, which, you know, we see, but you know, that that's a, that is a program that some of your listeners though, not the hydro Ottawa customers will will likely be aware of, but you know, there's also an important role for energy efficiency and conservation programs in this space, right? You know, energy equity programs, thermostat installations, insulation rebates, and direct install for low income customers, they all help people to reduce their energy costs consumption and, and help them reduce their energy bills. But you know, you're absolutely right, we need to make sure that we keep our eye on the most vulnerable as we go through this transition. And there are ways that we can do that. And there, there are examples like that program I talked about in the US, even at a national at a federal level, where there are programs that we could put in place.   Trevor Freeman  43:39 Yeah, we do have I mean, there's, like you say, there's national programs that could be rolled out, we do have more local programs and Ontario, there are some assistance for low income customers that that we can support on the electricity bills. Federally, we've seen that investment in kind of on let's call it the supply side, helping helping homeowners access capital for low carbonization upgrades. So whether that's weatherization or putting heat pumps in, you know, the current program is oversubscribed and pause as a result, but seeing more of that and more directed to electricity specifically, I think would be would be great. When it comes to emerging technologies, so things like energy storage, smart grids, shaping the future of our sector, and let's break that apart a little bit. Let's talk about that at the macro level first. So kind of the grid level, and then we'll talk about it maybe on a behind the meter on the customer side of things. What do you see the role is for these new emerging technologies?   Francis Bradley  44:40 Right. Well, you know, I mean, you know, as I said, as I said earlier, I think the the future is going to be an all of the above approach. And emerging technologies absolutely are going to be a critical part of this. But you know, we need to be realistic too. So you know, there's technologies that that may be able to replace fuel base generation but they're not yet commercially available, and they're dependent upon supply chains that are not yet at scale. So, you know, there's a lot of reasons to be optimistic, for example, about the role that small modular reactors are going to play or the battery storage will play in our electricity nicks out to 2050. But is it realistic to assume that they'll be deployed on a large scale between now and 2035? You know, we need to look at both the the medium term and the long term solutions. And so I think a lot of these technologies hold a great deal of promise, when talking about a 2050 timeframe, the 2035 timeframe is a little bit more more challenging, you know, one of the emerging technologies I mentioned in a minute ago, small modular reactors. And so, you know, we we see, Ontario Power Generation moving very aggressively hoping to complete their build by 2028. Get to grid by 2029. But, you know, if you happen to be Saskatchewan, and you're hoping that small modular reactors will be your solution over the longer term, you may not be in the 2035 timeframe. So, you know, that's, that's the challenge there. So I have a great deal of confidence in our ability to develop those technologies. And I think there's going to be some huge advantages as well, right? I look back, because I've been around the sector long enough to, you know, the early days of, you know, candu and the build out of the CANDU reactors, principally in Ontario, but although, you know, we have a plant operating in New Brunswick, and we did have one in Quebec for a time, but we built an ecosystem to support that as well. And, you know, I'm very bullish on our ability to develop these new technologies, hopefully develop them here in Canada, and develop the ecosystems and the supply chains here in Canada, not only to the benefit of sort of Canadians and Canadian customers, but I think, you know, much like can do this could be technology that we'd be able to, to market around the world. So small modular reactors, carbon capture, you know, this is there's so much work that's being done in this space, that, that, that I'm confident that they will be important technologies, and they will be important for our supply in the future. We just need to be realistic about when we can rely on them. Because you know, that the one thing that that we can never sacrifice, of course, is the reliability of the system that's customer will never accept that.   Trevor Freeman  47:35 Yeah, of course, we're so intertwined. I mean, everybody that's listening knows this. This isn't any kind of insight, but we're so intertwined that yeah, we can't sacrifice that reliability. And it does, it touches on this idea that we have the technology that we need today, in the in the sort of near and medium term to get going on this stuff. And we're already going on this stuff. And then there are these nascent technologies that some of them may succeed, some of them may not, but we, we do need to invest in those. And we need to figure out which one of those is going to help us in that sort of medium to long term to get over that last 5, 10, 15%. Who knows what, but help us get there? What about on the sort of smaller scale behind the meter side of things when we talk about these emerging technologies? So distributed energy resources, you know, solar storage at the home level? Do you see that playing a big role in how we move forward here?   Francis Bradley  48:32 Yeah. Like not tomorrow or next week? But you know, when you when you're looking over the longer term? Absolutely, I mean, I think, you know, we're already seeing changes in terms of how the customer interacts with the, with the supplier, in some jurisdictions, where, you know, you'll look at, you'll look at Hawaii, you'll look at Australia, where we see massive penetration of rooftop solar, for example. But what what that's given us is, it's given us the ability to get insights in terms of how that change in the relationship between the supplier and the customer that's going to evolve. Absolutely, and it is clearly something that, you know, as we've seen, in in, in those jurisdictions, that there is a, there's a significant amount of interest in, in in pursuing this. And there's a great deal of interest when the opportunity arises on the part of customers to be able to access technologies that allow them to feel like they they have more agency, sort of in the relationship and how they relate to electricity. So yeah, absolutely. When you when you go out to, you know, the longer term, distributed generation rooftop solar mine, I'm a, you know, an EV driver now, but like 10 years from now, you know, hopefully we will have figured out how to use vehicle to grid. You know, again, you know, when I talk about it you're going to need two to three times more kilowatt hours. I'm not saying we necessarily need two to three times more generation, because a lot of these technologies are going to give us the ability to have a more flexible, and more efficient electricity system. And a number of those are at the customer level. So you know, if you think of an electric vehicle, that is probably charging 2% of the time, or 4%, of the time, and the rest of the time when it's not being driven, it's plugged in. And that's a I've got an 82 kilowatt hour battery, that, you know, at some time in the future, me and all of my neighbors will have 82 kilowatt hour batteries. And so like how many megawatts on my block that that we could tap into, that can not only give the customer the ability to, as I say, have more agency in the relationship, but man the kind of flexibility we'd get for the distribution system operators, to be able to tap into that the greater resilience that we would have. So you know, that's just one example of a technology that that I think holds a huge amount of promise and that one aint pie in the sky, because I'm driving around with with a 82 kilowatt hour battery today.   Trevor Freeman  51:11 Yeah. And I mean, the other side of that is also happening, the utilities are getting ready for that, and putting in the foundation and the building blocks that we need now, to do what you just described, to be able to look out there in our service territory and say, what are all the assets that I can use not just the incoming power from the grid, not just our switches and transformers? But what are all the assets that I can call on? And how do I incentivize this customer to do this behavior? You know, a couple episodes ago, we talked about what's our grid modernization roadmap, and it is designed very much around that, that capability. So I mean, that was a bit of a loaded question. I'm, that's kind of the answer I was expecting. For sure. But yeah, that's something that we're super keen on and super interested in. So Francis, as we kind of wrap up today, you know, maybe sum up some of the major steps that you want to see us take nationally in terms of policy to get out of this culture of No, as you call it. And into the you know, getting to yes, that towards the name of your report.   Francis Bradley  52:15 Sure. Okay. So to get to that place, we would have that one project, one assessment framework that's been promised in two consecutive federal budgets, we'd have it and we'd have it up and running, we have significant changes to the Impact Assessment Act, we would have a clean electricity strategy. That's been one of the things that, that we've been asking of the federal government for the past several years, you know, we have similar strategies, we've got a national strategy for hydrogen, we've got a national strategy for minerals, we've got, you know, national strategies in a whole bunch of areas. We had a commitment last year by the federal government to have a national strategy for for clean electricity. So we're hoping to see that this year, we would engage indigenous communities at the start of a process and we'd work to split equally in favorable ways like Hydro One, and for desync have done in Ontario. And we would have collaboration at all levels of government, federal, provincial, indigenous, as well as regulators. That would be that would be my wish list.   Trevor Freeman  53:11 That's, that's no small list. Well, Francis, it was really great talking to you today. We do always end our interviews with a series of questions. So if you're ready, I'll dive right into that   Francis Bradley  53:22 A series of questions. Uh oh. Okay   Trevor Freeman  53:24 We'll see how you do here. What is a book that you've read that you think everybody should read?   Francis Bradley  53:30 Okay, well, it is a book that I have not read yet. I've just begun reading it because somebody pointed me in this direction. So I just got it. It's called the parrot and the igloo. And that the subtitle is climate and the science of denial. It is a it is a sofar, a very, very interesting book by the author David Lipski. So, I've just started reading this, but so far, it's proving to be a really great read.   Trevor Freeman  54:03 If our listeners can hear me typing here, every once in a while, actually, you know, maybe half the time I hear about a book that I haven't come across yet. So I'm taking notes here. That's a good one.   Francis Bradley  54:12 There you go. Yeah, the parent and the igloo.   Trevor Freeman  54:15 So same question, but what's a movie or a show that you would recommend?   Francis Bradley  54:19 Oh, okay. Well has nothing to do with energy or electricity or climate change. But But Mad Man. the I think the greatest the greatest series that they did ever been produced and television. Love it. Yeah. I wish I would have been there. They just seem to be such weird and creative meetings that they that they wind up in terms of figuring out the advertising back in the 1960s.   Trevor Freeman  54:42 Yeah, totally. There's, there's no shows out there that you can go back to several times, if not indefinitely, and that's, that's certainly one of them   Francis Bradley  54:49 that's one of the ones for me.   Trevor Freeman  54:50 Yeah. If somebody offered you a free round trip flight anywhere in the world, where would you go, if you could offset the carbon   Francis Bradley  54:59 I would I would, I would go to Ireland, I had been planning a trip to Ireland in April 2020. With with two of my kids. It never happened that we've never been so, you know, one one side of our family the roots go back there. But I have never been so it would absolutely be to Ireland.   Trevor Freeman  55:22 Very cool. It is amazing how many times I hear that sort of there's those 2020 2021 trips that were planned that never happened. Yeah. are on the list for everybody. That's great. Who is someone that you admire?   Francis Bradley  55:36 Niko Tesla. Yeah, Tesla, who is I think one of the real unsung heroes of the of the past, you know, people know all about, you know, Edison and Westinghouse. But very few people know about Tesla. And and I think I think he had significantly more patents than either either of those two guys. Everybody knows the car, but very few people know the man.   Trevor Freeman  56:03 Okay, so last question, what is something that you are excited about when it comes to the energy sector and its future?   Francis Bradley  56:10 Everything   Trevor Freeman  56:11 Great  The future is bright. I mean, I wouldn't want to be anywhere else right now. Specifically, you asked about the energy sector, but specifically electricity, I'm, I'm really looking forward to the future. You know, I talk a lot about, you know, we're going to have to build in the next 25, 26 years, a system that is twice as large as the system we had, you know, 120, 130 years ago. But if you look at how much a society has changed, because of electrification in the past century, society is well is going to change even more significantly, in the next 25 years. As we move forward. And we double, I'm really, you know, it's just like everything about what's going to happen in the sector. And, and, and our utilization and the new technologies that will, we'll have access to is, I find it endlessly fascinating to see what that future is going to look like I'd listened 15 years ago, nobody had iPhones and iPads, and all of these new technologies. And we used to have to watch TV shows when they were scheduled. And, and, you know, when I started working back in the day, if you if you wanted money, it would be cash, and you'd have to go to the bank. And if you didn't get there by Friday afternoon, you were stuck for the weekend. So yeah, you know, now I pay everything with my with my watch, right? Yeah, it's not even a tap. I just, I just use the watch. And so like, what's going to change in the next 25 years? It's going to be endlessly fascinating.  It does feel like it, you know, and I've been in this industry a little while now. And it seems like the rate of change, specifically on climate on the energy transition on decarbonizing feels like it's picking up speed and getting momentum, and people are kind of getting behind it, not to say we've solved all the problems, but Right. That's the optimistic piece for me that I look at and say, Yes, stuff is happening. And this is a really cool spot to be I agree.   Francis Bradley  58:16 Absolutely.   Trevor Freeman  58:16 Well, Francis, this is a fantastic conversation. I really appreciate you taking the time and sharing your insights with us. And this was number two on the podcast, so I'm sure there'll be a third at some point.   Francis Bradley  58:25 Excellent. Thanks a lot, Trevor. It was great to chat with you take care.   Trevor Freeman  58:28 Yeah. Thanks.   Francis Bradley  58:29 Cheers.   Trevor Freeman  58:31 Thanks for tuning in to another episode of The think energy podcast. Don't forget to subscribe wherever you listen to podcasts, and it would be great if you could leave us a review. It really helps us spread the word. As always, we would love to hear from you. Whether it's feedback, comments, or an idea for a show or guests. You can always reach us at think energy at hydro ottawa.com  

Get to the bottom of how policy is ushering along the energy transition. In part two of the series, Associate Professor Nicholas Rivers shares how energy policies are helping shape the actions taken to address climate change. From decarbonizing buildings and transportation to the hard-to-tackle parts of Canada’s economy and its major industries. Plus policy’s role in supporting distributed energy and resources. Dive back into the conversation in episode 139 of thinkenergy. Related links   ●       Listen to part one: https://thinkenergypodcast.com/episodes/energy-policy-deep-dive-with-nicholas-rivers-part-1/ ●       More about Nicholas Rivers: https://uniweb.uottawa.ca/members/969 ●       uOttawa Institute of the Environment: https://www.uottawa.ca/research-innovation/environment ●       The Canadian Climate Institute: https://climateinstitute.ca/ ●       Trevor Freeman on LinkedIn: https://www.linkedin.com/in/trevor-freeman-p-eng-cem-leed-ap-8b612114/ ●       Hydro Ottawa: https://hydroottawa.com/en    To subscribe using Apple Podcasts: https://podcasts.apple.com/us/podcast/thinkenergy/id1465129405   To subscribe using Spotify: https://open.spotify.com/show/7wFz7rdR8Gq3f2WOafjxpl   To subscribe on Libsyn: http://thinkenergy.libsyn.com/ --- Subscribe so you don't miss a video: https://www.youtube.com/user/hydroottawalimited   Follow along on Instagram: https://www.instagram.com/hydroottawa   Stay in the know on Facebook: https://www.facebook.com/HydroOttawa   Keep up with the posts on X: https://twitter.com/thinkenergypod   Transcrpit: Trevor Freeman  00:07 Welcome to think energy, a podcast that dives into the fast changing world of energy through conversations with industry leaders, innovators and people on the frontlines of the energy transition. Join me Trevor Freeman, as I explore the traditional, unconventional and up and coming facets of the energy industry. If you have any thoughts, feedback or ideas for topics we should cover, please reach out to us at think energy at hydro ottawa.com. Hi, everyone, welcome back. Okay, so this is part two of my conversation with Nicholas rivers about policy, and specifically how policy is and will in the future, shaping the different solutions and different actions that we can take to address climate change and to usher along the energy transition that has already started. As a refresher, Nicholas rivers is a Professor of Public Policy and International Affairs from the University of Ottawa. And his area of focus is really the sort of research into an evaluation of environmental policies. So this is a great conversation. And if you haven't listened to the previous episode with Nicolas, I really encourage you to do that it kind of lays the groundwork and really helps feed into this part of the conversation. On today's episode, we're going to talk about decarbonizing buildings, decarbonizing transportation, about some of those hard to tackle parts of our economy, kind of those major industries, as well as the role of policy and supporting distributed energy resources. So solar panels and batteries and things like that. So it's really a great conversation, start with the previous episode, if you haven't already. And then thanks for joining us here for this one. And happy listening. Okay, so we've talked about generation at the grid level, but let's talk about what we call distributed energy resources. And for our listeners, just a reminder, this is things like rooftop solar behind the meter storage, so having batteries at homes or businesses, which we are going to need a lot more of in the future. And we're going to see a lot more of on our grid in the future. What policy tools are out there that could help ramp up the implementation of these resources? Is it as simple as you know, incentives to lower the upfront cost?   Nicholas Rivers  02:21 Okay, good question. Maybe I'll just start out by giving some broader perspective about why we why we might want to go down the distributed energy route. So as you mentioned, a distributed energy resources are things like rooftop solar, right on the kind of residential building or a battery pack in the garage of your residential building. And this is a different approach than the way we normally approach the electricity sector, where our generation and storage infrastructure to the extent we have any is centralized, right. So in a centralized system, if it's solar, it would be a big utility scale solar project in a field somewhere, or now we're starting to see the ISO just approved a bunch of battery storage projects that are going to be you know, big centralized resources, really big batteries, or it could be pumped hydro, or you know, compressed air storage that that are not in someone's garage, they're, you know, these big sites that are that are well away from people's homes typically. So why would we want to change the paradigm and, and go towards this kind of decentralized type of approach where the where the resources are in people's homes or on people's homes? I'd say there was a couple of reasons we might want to go that route. One is that the distributed resources if they're in people's homes, well, they're close to the demand. Right? So if people you know, ultimately, the reason we have electricity generation is to meet people's and industries demands for electricity. And putting those resources right at the source of demand means that we don't need so many wires to connect the resources to the to the demand centers, and potentially that there's less congestion on the wires and, and less losses getting from the source of supply to the source of demand. So that's one reason. Another big reason I think, that will become more important in some areas of the world and more important as we scale up decarbonisation is land use, and then, you know, we got all these rooftops that are just sitting there. And putting solar panels on those, basically wasted surfaces is a way of conserving land as opposed to to putting new solar panels in a field that has other uses. So I see that as being a potentially really important reason why we might go down that decentralized route. It's important to say that land use constraints are not binding in Ontario today for for, especially for zero carbon resources, right? There's we're lucky in Ontario that we've got a fair amount of land per person. And we've also not got that many solar or wind or battery resources currently. And so the pressure that we're putting on our land from those types of centralized resources are pretty small. But certainly as we try to go further on that decarbonisation route, thinking about land constraints is going to be important. I would say that there is a downside to going the decentralized route. And that's that it's more costly. So generating electricity at a home, is storage of storing electricity at home is typically quite a bit more expensive than doing it at a utility scale, in a in a kind of centralized manner. And that's just because, you know, a solar panel cost what a solar panel costs. So you're getting, I think, the same basic solar panel, solar module, and a centralized system, compared to a decentralized system. But all the side costs, the cost of planning and installing, and all the racking that has to go for solar panels, same with batteries, is a lot more expensive, when it's done kind of on these boutique, individual roof projects, compared to what it's done in a centralized approach. And so what we're gonna do as we think about, you know, do we go down this more decentralized route or more centralized route? So we've got to think, are these land benefits and the benefits we get from having the resources close to the demand? Are they outweighing the extra cost that we're paying from, from going this more decentralized route?   Trevor Freeman  02:25 Yeah, so it's kind of an economies of scale question of obviously, investing in the infrastructure for a large scale solar installation gives you that, you know, more bang for your buck on a kilowatt hour basis, then each individual rooftop project, but I guess there's that aspect of, you know, customer control and customer preference of, you know, I like the idea of having my own power generated on my roof, it gives me some control, it gives me some redundancy. It also kind of protects and let me know what your thoughts on this it. It locks me into cost for energy, at least for a portion of my energy for the life of that equipment, rather than sort of being at the whim of rising utility costs over time. Is that a fair assessment?   Nicholas Rivers  07:15 Yeah, I think that's right. Solar panels and batteries, both have a free long lifetime. So once you've paid for them, you know, what you paid, and you're going to be able to amortize them over the length of the investment. Of course, that assumes that you're going to be living in the same house for the 20 or 30 years of the investment.   Trevor Freeman  07:31 Exactly. Yeah.   Nicholas Rivers  07:32 So I think there is still a risk there. But I do agree with you that it does put more control in individuals hands more, it gives people an ability to kind of choose their own destiny with respect to energy, it allows them to make a zero carbon investment that, you know, they maybe feel really strongly about, and that isn't being made on their behalf at the central level. So I think you're right that it does give more autonomy to households.   Trevor Freeman  07:58 Yeah. And the current way that we I guess, sort of funder incentivize, if you will, on rooftop solar, for example, is just through the rates, so you're offsetting your rates. And that is how you get your payback on your panels. I know you and I have chatted previously about the model in Australia. Can you tell us a little bit about how they've approached this?   Nicholas Rivers  08:20 Yeah. So, South Australia also uses this net metering approach. So basically, net metering means when you're consuming electricity, you can think of like an old analog meter, the meters running one direction. And then when you generate electricity, and return it to the grid, when you're not using as much as you're generating, the analog meter runs the opposite direction. Of course, these meters aren't analog anymore. They're digital, but they're allowing you to kind of reverse the meter at times when you're generating.   Trevor Freeman  08:50 Yep.   Nicholas Rivers  08:51 South Australia has been a real leader in getting solar on people's rooftops. Now, you might think, oh, it's super sunny in South Australia, and it is super sunny in South Australia. So it makes sense to have solar in people's rooftops. But there are lots of areas in the world that are super sunny, that have had not nearly the success that South Australia has had in putting solar on rooftops. And I would think one of the big reasons is, is program design. So they have designed a program that makes it really easy to access the program and access the incentives that are part of the program, and that lets household navigate it pretty seamlessly. So my understanding of the program is it's an incentive, which is the typical way we we kind of provide incentives for people to to undertake these novel technologies. It provides households with a you know, an upfront payment for for putting solar on the roofs. But I think that the real trick is that it's not provided to the household. And there's not an onerous application process that happens. It's provided to the to the companies that install solar panels on people's roofs and they pass through the incentive. Have to the household. So all of the paperwork and the planning is undertaken by the company. And the household, basically, just, as my understanding just says, Yeah, I want some solar panels on my roof. And, you know, tomorrow the solar panels are on the roof. And they don't have to go through the kind of extensive paperwork and the qualifying and the waiting for the, the incentive to be paid. It's all done upfront. And it's all done with a minimum of paperwork.   Trevor Freeman  10:23 Yeah, so from a homeowner perspective, in Canada versus in South Australia, South Australia is just seeking a much cheaper cost for solar, they don't have to jump through the hoops. That's all kind of done taken on by the government and by the the industry.   Nicholas Rivers  10:39 Yeah, and we do have incentives for solar here. In some provinces anyway, and there have been incentives federally, but they're there, they're more onerous to apply for. And they put the homeowner in the position of having to pay for the system upfront, and then waiting for the rebate. And it's a big outlay for homeowners and the rebate is uncertain, right? You can put the paperwork in. And of course, you think you're gonna get it back. But there's always that chance that something went wrong, and you didn't do it quite right. You don't get the rebate. Yeah, there's a risk there. So I think this this kind of upfront payments program that's processed by the company is as a real, you know, something we could learn from in Canada.   Trevor Freeman  11:16 Right. So that's potentially a key role. And this may be applies to other programs, as well of, of government have policies to take on that administrative burden take on that risk, if you will, away from the end user to make it seamless and streamlined for the end user and easier to do   Nicholas Rivers  11:33 People have better things to do than think about energy. And so I think that   Trevor Freeman  11:38 Or fill out paperwork,   Nicholas Rivers  11:39 yeah, fill out paperwork, and just, you know, they don't want to spend their time, you know, trying to figure out if the incentive is going to cover their net metering benefits they wants to be they want to be added be as easy as possible.   Trevor Freeman  11:52 Okay. Yeah, that makes a lot of sense. Okay, moving along, then to transportation. This is something of course, that Canadians will be pretty familiar with. We've seen a big move toward electrifying personal vehicles, there are more EVs out there today than ever before, you know, going back into even recent memory, it seemed like a rare thing to see an EV on the road. And now it's not at all, but there's still a long way to go. As much as we've got a lot more, we still are overwhelmingly using fossil fuels for our personal transportation. What kinds of approaches will help speed that transition up? We have a federal rebate when it comes to buying electric vehicle. Is that enough? Or are there other tools that we can use to speed up that transition?   Nicholas Rivers  12:36 Yeah, we're at about 11% of new cars that are sold are electric these days, and about one and a half percent of our fleet, because it takes our fleet a long time to turnover, right. So even if we get to 100% sales, we could still be waiting another 20 years before we get to 100% of our fleet be electric. So this is not going to be something that resolves itself really quickly. Because it does take a long time to turnover and longtime for car manufacturers to change the kind of vehicles they're making. I'm convinced we're on the transition, and that it is underway no matter what we do in this sector, that that these cars will be eventually be as cheap or cheaper than internal combustion engine cars, and will deliver the range that we want and the performance that we want. We're not there yet. So So what do we do in the meantime, I would say one of the things we should be doing as governments is fixing kind of the chicken and the egg problem of electric vehicles and governments are very active in this area. But the chicken and egg problem is who wants to build a charging station if there's no electric vehicles, and who wants to buy an electric vehicle if there's no charging stations. And so I think government has been playing an active role there, although arguably, it's still behind where we want it to be. People still experienced troubles with charging electric vehicles. And reliability of chargers is an issue. It turns out that the economics of operating a charging station don't look very good. And so perhaps there needs to be more of a public role in figuring out how to get these systems up and running more of the time. I'm not exactly sure what that would look like. But, but I do think the problem isn't going to solve itself entirely on its own, especially in more remote or Northern or rural areas. This probably along a lot of role for government support for charging. In terms of a policy approach. I really like the zero emission vehicle standard. This is just a standard that says okay, manufacturers, it's targeted. The manufacturer is not a retailer or not customers. And it says manufacturers you have to sell a certain proportion of the fleet you sell is zero by zero emission by this year and a bigger percentage by this year. And that's something that Quebec and BC and California and a number of other places have implemented zero emission vehicle standard, and the Canadian federal government has announced that it's going to go the same route.   Trevor Freeman  15:05 Gotcha.   Nicholas Rivers  15:06 And so what that says is, in 2026, in Canada, major vehicle manufacturers will have to sell 20% of their fleets as electric vehicles. Were at about 11% today. And that number will ramp up every year until it hits 100% by 2035. Now, again, I think this transition is happening anyway. So I think that that will help speed up the transition. But at it, it's not dramatically different from kind of what we expect, even without that kind of policy. And so I do think that's a that's a really nice policy, because it gives automakers a target, it gives them some certainty. And it helps to ensure that they make vehicles available to Canadians where they want them.   Trevor Freeman  15:48 Yeah, I think, I mean, we've all heard those stories of people that wanted to buy an electric vehicle on it wasn't ready, or the price point wasn't there. And I think by requiring more stock, requiring those targets to be hit, it's going to help move people along in the direction that a lot of people already want to go. And we're seeing that as those numbers tick up.   Nicholas Rivers  16:08 Yeah. Let me say a little bit more about this policy, because I think it's cool. It's one of those examples, which is a regulatory policy, which has a market based or carbon pricing kind of component to it. So it's regulatory, right? I just described that manufacturers have to hit, let's say, a 20% target in the year 2026. So the rule is, if you sell a lot of vehicles in Canada, 20% of them have to be electric by 2026. But then it's got this kind of hybrid component, not a hybrid car hybrid policy. So the it's kind of, it's got a carbon price kind of built in, which says, Hey, if you can't do it, well, you can trade with some other company that can. So maybe it's going to be gonna make up some names here, maybe it's going to be that company X says, oh, you know, we're really, you know, we really don't want to make the transition quite so quickly, we're going to sell internal combustion engine cars for a few more years. And Company Y says, Well, we're actually way ahead of that curve, it's going to be able to sell some of its credits, Company Y is going to sell some credits to Company X. And so Company X could keep doing what it's doing. But pay a penalty, that company y can get a benefit from being ahead of the curve.   Trevor Freeman  17:17 Gotcha. And to the consumer, the overall stock of options is still where the government wants it to be. There's still enough electric vehicles out there that we can purchase.   Nicholas Rivers  17:27 That's right. I think I mean, the the availability is less of a concern now than it was when supply chains were all snared up during the pandemic. I think if you went out and you had the money, and you were willing to, you wanted to go buy an electric car, you would get one relatively quickly today.   Trevor Freeman  17:42 Yeah   Nicholas Rivers  17:43 That's, that's I think that was that's a legacy problem that fortunately, we don't have so much anymore.   Trevor Freeman  17:47 So I mean, that's personal transportation, we're also seeing a move to make public transportation more carbon free and more electric here in Ottawa, where I'm based where we're both based. We've seen our city make that transition to electric buses, we're bringing on you know, a portion of the fleet in the next couple of years is going to be electric buses, we've seen our new LRT system is at least partially electrified, what are some of the policies out there that are helping municipalities or operators and public transit systems make this shift from traditional fossil fuel systems?   Nicholas Rivers  18:27 Yeah, so this is a procurement policy. So it's government saying, we're going to create a new market for this technology that doesn't really exist yet. And help to drive drive technology along right. So this is something we talked about a little while ago. And I think that this will help, you know, these these vehicles, big vehicles with heavy duty cycles. There's certainly parallels in kind of goods transport. So having some of that kind of exposure to new deployment in the public sector, I think will help with decarbonizing goods transport later on. So this is one of the cases where governments kind of creating this niche role for each policy or niche, I guess, nice role for this technology to be deployed first. And it's accepting the higher cost of these policies of these technologies initially, and will help drive down the costs as they get some experience with these technologies. Okay, so what's it what's it doing in Ottawa? Ottawa has promised to not buy any more fossil fuel buses, it's gonna slowly transition its bus fleet to electric. And I guess that's a procurement policy. It's supported by funds from the federal government. So the Canadian infrastructure bank supports this policy. And so the way that it works is the federal government's pay the additional cost that the electric bus costs relative to a normal diesel bus, and the city just pays the same as it would for the normal diesel boss with the feds picking up the rest of the tab.   Trevor Freeman  19:58 Right   Nicholas Rivers  19:58 The city's original expense. response has been really positive, it's found that maintenance costs are lower that fuel costs are lower, and the performance is at least as good in the electric buses compared to the, to the diesel buses. So it's experiencing a cost savings. And at least in the initial reporting, this seems like a really positive experience.   Trevor Freeman  20:17 So it's essentially the policy there is helping buy down that initial upfront jumping costs. So that, you know, yeah, municipal budgets can remain the same.   Nicholas Rivers  20:26 Exactly.   Trevor Freeman  20:26 But we get that better technology, and we're moving forward on our emissions reduction.   Nicholas Rivers  20:30 Yeah. So this is really a federal and and city policy.   Trevor Freeman  20:33 Gotcha. Okay, so let's talk about buildings, which are a major source of emissions, especially here in Canada, primarily because we are a cold climate, and we have to heat those buildings, or else they wouldn't be comfortable. And traditionally, this has been done with fossil fuels, you know, we burn natural gas, to heat our buildings is a large majority of Canadians. That's how they heat their space. In Canada buildings account for over 100 million tons of GHG emissions a year. So this is definitely a sector that we need to see some transition in how we approach them. What is the role of policymakers to help us decarbonize our buildings? And I want to split this question into two pieces, the first being residential buildings. And then we'll talk about commercial and institutional after because I think they're they're kind of different cases here. So let's talk about residential first.   Nicholas Rivers  21:25 Okay, residential buildings, I think heard at some of this is going to apply to both residential and commercial but of residential buildings, you're totally right to say that the big source of emissions is natural gas. And we do have other fuel uses as well like oil and propane, but the the big one is gas. And I think a special challenge for residential buildings. And it applies to commercial buildings as well, but especially residential is that they last a really long time. And then, so it's not like cars where you know, after we have got all the new cars to be zero emission, you got to wait maybe 10 or 15, or maximum 20 years, and the entire fleet is zero emission. Because cars only last 15 or 20 years buildings last, we don't even know how long they last hundreds of years. 100 years.   Trevor Freeman  22:14 Yeah, exactly.   Nicholas Rivers  22:15 And so we don't just have to tackle new buildings and then wait for them to kind of percolate through in the same way as we do for light bulbs or cars or something, we have to figure out a way to decarbonize existing buildings. And this turns out to be difficult. But let me start by saying the first thing we should do is make sure that the new buildings that we're building are not producing carbon emissions, that's the easiest thing to do. Getting a tackling a building or decarbonizing building, once it's already built, and part of the building stock is relatively difficult compared to taking a new building and designing to be zero carbon from the outset. And my view is that the best thing we can do there is to not connect new homes to the natural gas network, or at least pass the full costs of the natural gas network onto these new homes as they're built so that homeowners can make and developers can make an informed decision about the most effective way to produce those new homes.   Trevor Freeman  23:13 Yeah, I think like even that concept is something we talk about, you know, when we're working with our customers on equipment choices, as well, as you know, the decision you're making today on, you know, let's say your boiler will last with you for the life and that equipment. And in the case of a boiler, let's say that's 25 years, but to your point, in the case of a home, deciding to start down that path of fossil fuels, that building is going to live with us for you know, who knows how long and we will then have to get off those fossil fuels later. So I think for that new construction piece, yeah, that makes a lot of sense of making sure we're making the right decisions today, because we know we have to electrify   Nicholas Rivers  23:50 Right. Yeah, we do not what we don't want to do is build a gas home. And then 10 years later say, oh, let's actually make this home an electric home.   Trevor Freeman  23:58 Yeah, totally.   Nicholas Rivers  23:59 Because now we've spent twice on on one thing. So if we know we're gonna go zero emission, then we should be building new homes as zero emission homes. And we'll save money doing it.   Trevor Freeman  24:08 Yeah, and we know how to do that today.   Nicholas Rivers  24:10 We know how to do it. The harder problem is existing homes. And that's, you know, most of the homes that are around today that are part of our housing stock today will still be part of our housing stock in 2050. So we don't get to do over. We've got to tackle these existing homes. And it's relatively difficult compared to other sectors. Because if you want to take an existing home and decarbonize it, you really have to do it on a home by home basis. You have to invite you know, an auditor in and figure out what's wrong with it, or the cheapest way to decarbonize that home is most effective way to decarbonize at home, maybe get some engineers to help figure out what the interventions look like maybe gotta consultant in to put some new windows or doors or insulation or air sealing into the home and so but I adds up to a lot, a lot of people being touching the home, it's not something where we can go to a factory typically and pull out an identical component that, you know, might get cheaper over time, and strap it to the home. So I think that's part of what makes this challenge difficult. Luckily, we do have some kind of economies of scale in homes when it comes to heating systems. And this is heat pumps that can be adapted to most homes as a replacement for a furnace, or even a boiler. And Heat pumps are a technology that I think people have heard a lot more about over the last couple of years, they're basically an air conditioner that can run in reverse. So we can move heat out of a house and also move heat into a house. And these are getting more common for a cold climate, like we're in. And getting cheaper and contractors are getting more experienced with them. And so I think that we will start seeing more penetration of heat pumps in residential sector. Having said that, it's not a it's not a slam dunk. Right now, heat pumps, in some cases are cost effective compared to gas. But they're right at the margin, right? So you don't save a whole bunch of money by switching a gas furnace to heat pump. In, for example, in Ontario. Now that'll change. If our carbon price keeps going up every year, eventually, it'll it'll become something where the carbon price makes heat pumps make easy financial sense that it becomes a more straightforward decision. But right now, they're kind of similar cost to operate compared to a natural gas furnace. And so we're not seeing a whole bunch of penetration of them in Ontario.   Trevor Freeman  26:50 Yeah, I mean, I think that even even just that fact that actually, coincidentally, the previous episode on this, we actually talked about heat pumps and went through a bit of a case study with with someone that installed one, but you're right, like right now, you're kind of comparable, and your energy costs, maybe you save a little bit of kind of depends on on the rest of your context as well. But that highlights the value of the role in policy of helping to drive down that upfront cost. And by helping get more of them out there. And letting as we've talked about already, in this conversation, letting the market forces drive down the cost of heat pumps, because we're going to be putting more of them out there in the manual manufacturing process, the supply chain process, that's all going to find those efficiencies so that putting that heat pump in becomes comparable on an upfront cost basis to a furnace, for example, which today it's not.   Nicholas Rivers  27:44 Yeah, I would say the other challenge is that the whole HVAC or heating ventilation air conditioning ecosystem is set up around natural gas furnaces and natural gas water heaters in Ontario. And so the contractors are used to it, people are used to it. And it's it makes it kind of when your furnace or your hot water heater fails, and you panic a little bit because it's the winter and you don't want to get cold the next day, the easiest thing to do is to call your company and get them to put in the same thing as you've already had it's safe, you know it works. And by doing that, you've locked yourself into another 20 or 25 years of heating with natural gas. And so I think one of the things is just kind of the human dimension of this problem that heat pumps remain kind of is unconventional technology. They work really well they've been demonstrated to work really well in Ontario, but it's not widely known. And certainly the supply chain isn't there in the same way as it is for furnaces, and the contractors are, I think less comfortable with installing them as they are for furnaces. And so people get guided towards furnaces at the time of furnace failure or water heater failure. And it's only like this kind of, I think if the people that really want heat pumps that end up going towards that route right now. Because you really have to you have to want them for that to be the outcome. It's not something that's going to happen on its own. And unfortunately, in this moment of panic, you don't get the time to kind of reflect on on what you might want over the next couple of decades.   Trevor Freeman  29:25 Yeah, totally. And I've I've thought about this a little anecdote on this show before my own experience with having a furnace die in January as I was starting my research into heat pumps and ended up being able to get a heat pump but not in the manner that I wanted, not the system that I really wanted. And, and yeah, I ended up because of that, having to do all the research myself and being someone that works in the energy space. That's, you know, that's what the reality was.   Nicholas Rivers  29:50 I would say the other thing is I heat pump provides both air conditioning and heating. And it turns out that heat pump is basically cost competitive with a new furnace, and a new air conditioner. So if you if you, if you take a new house, and you either decide to put in a furnace and an air conditioner or heat pump, it's a wash, you'll pay the same for both. But very rarely does a house have a furnace and an air conditioner fail at exactly the same moment. So that they're making this kind of apples to apples comparison of a system that can provide both heating and cooling with another system that could provide both heating and cooling. And so this is like this coordination problem that heat pumps provide. And so I think when we're thinking about public policy, we should be thinking about not this kind of rational decision maker that's weighing the pros and cons of these two systems. But really, the person who's in a panic because their furnace failed in the middle of the night. And we got to think about how to make the Low Carbon solution, the easy solution for that person.   Trevor Freeman  30:50 Yeah, 100%. I mean, this goes back to the, I guess, the intro of what will be part one of this conversation that I gave and talking about, you know, the policy piece is kind of that foundation, that bedrock upon which the technological solutions the societal solutions are built, and exactly what we talked about with solar. How can we use policy to make this an easy path, make it the easiest path so that when someone doesn't want to think about it, when their furnace dies in the middle of the winter. This is the logical and easy and the path that they're going to choose.   Nicholas Rivers  31:23 Yeah, I think in many cases, choices are problematic, right? I'm a believer that that's not that's not universally true that more choices are often better. But also that we can get paralyzed by choices. So having to choose between a heat pump and a furnace is difficult for most people. Most people don't want to spend your time thinking about that. And I think, eventually, I'm of the view that we want to take a regulatory approach that we don't want to just allow everyone to be kind of deliberating especially at a panic about this choice themselves. Probably eventually, when heat pumps become good enough universally, that we want to have that be the regulated solution.   Trevor Freeman  32:02 Yeah, gotcha. Especially when to your point. It is the it becomes that clear, best choice. It's the most efficient.   Nicholas Rivers  32:09 Exactly, yeah.   Trevor Freeman  32:10 And we're working towards that we're getting   Nicholas Rivers  32:12 we're not quite there yet. There are places where heat pumps are not as effective as furnaces. And so I think that's why we haven't seen regulation in this space yet. But I think that should be an end goal.   Trevor Freeman  32:23 Gotcha. Okay, so that was residential buildings. As I said, commercial and institutional are kind of a different beast altogether. These are bigger buildings systems are bigger and obviously, more expensive ownership structure can be complicated. You have owners of buildings and tenants, you have investment companies that are sort of investing in the building as an asset as a way to make money. Help us tackle this beast, what is the role of policy and helping commercial buildings decarbonize here in Canada?   Nicholas Rivers  32:56 Yeah, good question. Again, I wouldn't say this kind of tenant and owner issue also applies if the residential sector, right, so there are renters that want to have a more efficient building, and that don't have any power to make investments in their building. So similar dynamic there, I think. I won't talk about specific technologies in the commercial sector, although there are lots of places that are experimenting with innovative new heating and cooling technologies, again, heating and cooling as the big greenhouse gas source in the commercial building sector, like it isn't residential. But I will just say that, I think the the types of decisions that are made and the way that they're made, it is quite different in the commercial sector to the residential sector. In a bigger commercial building, there'll be a building manager that's responsible for making decisions about, about heating and cooling investments in that. In that building, there'll be lots of tools that they have access to building management software, that that kind of optimizes building energy use, and costs, and helps them to make these kinds of decisions. So whereas the residential consumer doesn't necessarily want to think about what their what types of investments they should make to maximize their comfort and minimize their energy costs. That's what this building manager in a building is paid to do. And so they are going to be really thinking about this, these decisions carefully, and they're not going to be you know, they are going to be highly engaged in these decisions about what what types of energy to be using in the building. And as a result, I would say that carbon pricing can be quite effective in this sector, that policies that shift the relative costs of heating with gas compared to heating with electricity. They're going to hit the bottom line in that building manager for that building manager really quickly and allow them to kind of pivot if there are technologies available that can help them reoptimize in response to these changing prices, I will say that it's important to think about designing rebates for that carbon price. So we don't end up digging, our commercial buildings say we've we've designed rebates for, for residential households and for big industry. But I do think that this kind of pricing tool can be effective, probably more effective in the commercial sector than it can be in the residential sector. Because because there are people whose job it is to pay attention to building energy costs.   Trevor Freeman  35:31 Yeah, and I mean, you talk about rebates, I think, if there's a way to direct those rebates or direct that reinvestment into the types of solutions that are going to help people double down on the savings, and reduce their carbon consumption, and you know, then the next time around, it's even better and even better, I think that's definitely impactful.   Nicholas Rivers  35:51 Right? Yeah. So combinations of incentives and a kind of carrots and sticks approach. I agree.   Trevor Freeman  35:57 I do want to mention, and partly this is a bit of a plug here on the hydro Ottawa side of, you know, one of the initiatives that the federal government's taken on in terms of deep retrofits for commercial buildings is something they call their deep retrofit accelerator initiative. It's a program that hydro Ottawa is a part of two builds, build support services for commercial customers to identify pathways to decarbonize. So this isn't, you know, going out and paying for boilers or electric boilers or things like that, but it's helping building owners create a plan to tackle these complex, these complex retrofits. And that's something that the federal government is investing in. So I mean, for our listeners in our area, definitely keep your eyes and ears open for more information coming on that because it's early days yet. Okay, so my last question for you, Nick. And just looking at the time, I know we've we've taken a lot of time here chatting, it's been great. But I do want to touch on quickly before we wrap up, kind of what might be one of the trickiest areas, which is this idea of kind of heavy industry resource heavy industry, things like you know, the manufacturing of steel and chemicals and cement. There's a lot of emissions associated with this. They have kind of pretty unique demands in terms of high heat, high temperatures, things that are easily achieved with burning fossil fuels, maybe not so easily achieved with an electric option. What are we doing in that sense? What is the government doing to try and help those industries pursue decarbonisation?   Nicholas Rivers  37:28 Yeah, so we've kind of I'm in the the climate world climate policy world. And we have called these sectors for a long time, in quotes, the hard to decarbonize sectors, so, so it's been something where it's the kind of prevailing idea has been, let's all work on the stuff that's relatively easy today, like buildings and electricity, and vehicles. And eventually we'll find solutions for these hard to decarbonize sectors. And these are decarbonize sectors are things like cement, and steel, like you pointed out are chemicals, for example of pulp and paper, these big industrial sources, and it's not just that they require a lot of heat, or a lot of energy. In many cases, it's that carbon is released as part of the process for producing these materials. So for example, when you produce cement, I'm not a chemist here, but my understanding is you take limestone and turn it into lime as part of the cement making process. And the chemical reaction releases co2. Same thing with the typical way for making steel. You're reducing iron ore, and the reduction process that takes place in a blast furnace takes the poles the I'm gonna get in trouble here. I don't quite know what the reaction is. It releases co2 from the iron ore reduction process, in concert with coal. So they do require a lot of heat, but they're also releasing co2, just as part of the kind of process of producing these materials. So no matter how efficient they get that co2 is still coming out. And so that's part of the reason they're referred to as these hard to decarbonize sectors, I would say, Well, let me say that the thought that we've had as a community thinking about how to transition the economy is that it should be possible to do a lot of this easy stuff, almost 100% Man company easy, almost in quotes, here. decarbonizing buildings will be talked about is not actually easy. It's hard. It's easy relative to these hard to decarbonize sectors. So if we can get the easy sectors more or less decarbonized. One approach to dealing with these hard to decarbonize sectors would be to use, carbon capture and storage. So it would be to take the co2 that's coming out of these fixed processes, and capture it before it goes into the atmosphere and try The sequester it permanently, let's say in a depleted oil and gas reservoir. So that's one approach, we're also seeing a lot of a lot of innovation in this sector, away from some of these fixed process emissions. And so I'll give you an example. In Ontario, the federal and provincial governments recently put big investments into some of the steel facilities in Ontario. And these are our biggest point sources of co2 emissions in the province. These steel facilities, they're especially scattered around Southern Ontario around Hamilton. And, and they use this reduction process to to turn iron ore into steel. And then the big investments the province and federal government have put in how they are transitioning some of these steel producing facilities from from electric RBO blast furnaces to electric arc furnaces. So it will take the coal out of the process basically. And the these, these facilities when they're up and running, will produce big savings and greenhouse gas emissions. By eliminating this kind of important source of co2. We're seeing lots of innovation in the cement sector as well. So using different materials, in as part of this, the cement production. We're seeing a big project, for example, underway in Edmonton, it's a big cement facility that will have a lot of efficiencies built into it. But we'll also have CCS carbon capture and storage, it will be adapted for carbon capture and storage so that the co2 that's produced from this facility won't be released from to the atmosphere, it will be it will be sequestered underground. So I would say the role for government and these nascent, I would say projects is a direct support role to help these industries demonstrate the viability of some of these alternate pathways for producing basic materials with less carbon. And what we're seeing is government supporting these through either direct subsidies, or tax credits. And in some cases, we're seeing when these projects are starting to be produced materials, we're seeing government potentially have a role in procurement saying we're gonna buy lower carbon cement for this new set of government buildings, we're not going to source it from usual suppliers, we're going to reach out and try to create a niche market for this new cement or this new steel. So I think that's the right role. We're not at the stage yet where we can mandate these kinds of innovative technologies, because we're really just at the demonstration phase. But I would say that over the last decade, we're moving from thinking of these sectors as hard to decarbonize, to thinking maybe, to, you know, possible to decarbonize, so it initially seemed like there wasn't really a pathway and we're starting to see some light in the tunnel. Now some potential pathway for decarbonizing these sectors.   Trevor Freeman  42:58 Gotcha. Yeah, I mean, similar to how we have most, if not all the answers we need. Now, for some of those other industries, we talked about personal transportation, buildings, etc. There may come a day when we look back and say, yeah, now we've got all the answers we need for the heavy industry. It's just a matter of deploying them. But we're not there yet.   Nicholas Rivers  43:18 Exactly. We're not there yet. You know, it may turn out that these are not the hard sectors. Right, that if these technologies come along, there's only I don't know exactly the number. But let's say on the order of a dozen cement factories in Canada. So if we can figure out the technology, rolling it out to a dozen factories, institutionally is maybe not as hard a problem as rolling out building retrofits to 15 million buildings. So So right now, this seems like the hard to decarbonize sector, but maybe we'll be surprised.   Trevor Freeman  43:47 And to your point, I mean, pretty good bang for buck, maybe when we talk about just the amount of emissions from single points from these from these industries.   Nicholas Rivers  43:56 Yeah, I think the steel sector numbers in Ontario, these two facilities are we're gonna see a 3 million tonne per year greenhouse gas reduction, well, from the investments that Ontario and the feds have made in and converting them to electric arc furnace.   Trevor Freeman  44:11 Great. Well, Nick, I think that's the list of questions I had for you. So thanks very much. I really appreciate the time and your thoughts on these matters. It was great to having this conversation with you. We do always end our conversations with a series of questions that I asked all of our guests. So as long as you're ready to go, I'll jump into those.   Nicholas Rivers  44:30 Let's do it.   Trevor Freeman  44:31 What is a book that you've read that you think everyone should read?   Nicholas Rivers  44:34 This year, I read fire weather by John Vaillant. I've read a number of his books in the past. I love the way he writes. He's a Canadian author. He writes both nonfiction and fiction. This is about the big fire that took place in Fort McMurray in 2016. And it's a nonfiction book, but it's gripping. He's such a good writer. And it's such an important thing for us to understand exactly what's happening again, this year we've seen Fort McMurray threatened just last week by wildfires. So I really recommend this book. It sounds dry. It's about forest fires, but it's not at all. It's really good.   Trevor Freeman  45:09 Yeah. Okay, great. That's a good one. Same question, but for a movie or for a show.   Nicholas Rivers  45:14 I am. I'm a pretty slow TV watcher. I don't get a ton of time. But I am watching Showgun right now and loving it. Don't tell me the end, because I'm not through. But it's excellent show.   Trevor Freeman  45:26 Yeah, so I haven't started it yet, because I read that book as a teenager and haven't read it since. So I'm rereading it right now. And then I'm gonna watch the show after   Nicholas Rivers  45:35 I didn't read it. So I'm my wish with fresh eyes.   Trevor Freeman  45:39 I remember liking it, but I can't remember kind of how it ends. So I'm as excited as you are to see the end of that. If someone was to offer you a free round trip flight anywhere in the world, where would you go?   Nicholas Rivers  45:52 Well, I am a little sensitive about flying long ways, just because of the nature of this conversation but my kids, I have a 13 year old and a 10 year old. And they're super into comics and Nintendo and really want to go to Japan. So I would go to Japan for for a few weeks with them.   Trevor Freeman  46:13 Who is someone that you admire?   Nicholas Rivers  46:15 This was hard. I set out you gave me these questions a couple of days ago. And I sat out on the front porch and the first nice day we had in a while with my wife and my kids. And I was telling them about this. And I said I was stuck on the Who do I admire? And they said, You should admire us. So I admire my kids. They're really optimistic. They're super fun. They're loving life. And I think it's a great set of characteristics.   Trevor Freeman  46:41 Yeah, that mean, that is never a bad answer. That's a great answer, and good for them for self awareness to call you out. Finally, what is something that you are excited about when it comes to the energy sector or this transition that we're in what excites you about the future where we're going?   Nicholas Rivers  47:00 Well, let me give a two pronged answer here. I'll start by saying that I'm nervous.   Trevor Freeman  47:04 Yeah   Nicholas Rivers  47:04 I think the stakes are high. We're learning more and more as a society about, you know, what climate change looks like. And it's not pretty. And the I think the big thing that we have to keep in mind, and the thing that keeps me optimistic is that we still have a lot of role to play in determining where we ended up here. And, and we're seeing really dramatic changes in Technologies, and in people's engagement and policymakers engagement on on this file. So we've talked about how fast some of the technologies have moved over the last couple of decades or decade in particular, solar and vehicles and batteries and all these things. We're also seeing policy change really dramatically, right? It would have been inconceivable to say that we would have a high carbon price and a mandate for zero emission vehicles and phase out of coal fired power and potential clean electricity regulation and an oil gas cap, and all this stuff on the books 10 years ago, and and now we're there. So I feel like not only is technology changing quickly, but the policies are also changing quite quickly. And and it looks like they're all changing in the right direction.   Trevor Freeman  48:19 Yeah, I definitely can relate to that. As someone who's been in this industry, this sector for a little while, at least, it feels like there's momentum now it feels like the pace of change is finally starting to really pick up and not where we need it to be. There's lots of work to do, as you say, but yeah, maybe we're starting to see things move a little faster   Nicholas Rivers  48:42 Yeah, exactly. So there's certainly reason for optimism. That's that's kind of guarded optimism.   Trevor Freeman  48:47 Yeah, that's a that's a fair point to end on. I think that's a good space then. Nick rivers. Thanks very much. I really appreciate you coming on the show and chatting with us today. And I've really enjoyed our conversation.   Nicholas Rivers  48:59 Thank you so much for having me. I enjoyed it, too.   Trevor Freeman  49:00 All right. Take care. Thanks for tuning in to another episode of The think energy podcast. Don't forget to subscribe wherever you listen to podcasts, and it would be great if you could leave us a review. It really helps us spread the word. As always, we would love to hear from you. Whether it's feedback, comments or an idea for a show or guests. You can always reach us at think energy at hydro ottawa.com  

In this first of a two-part series, we unpack the vital role of policy in driving the energy transition with Nicholas Rivers, Associate Professor at the Graduate School of Public and International Affairs and the Institute of the Environment at the University of Ottawa. Join us as we explore the layers of policy implementation, the interplay of social and technological solutions, and the challenge of designing policies that balance data with public opinion and emotion. Related links   More about Nicholas Rivers: https://uniweb.uottawa.ca/members/969 uOttawa Institute of the Environment: https://www.uottawa.ca/research-innovation/environment The Canadian Climate Institute: https://climateinstitute.ca/ Trevor Freeman on LinkedIn: https://www.linkedin.com/in/trevor-freeman-p-eng-cem-leed-ap-8b612114/ Hydro Ottawa: https://hydroottawa.com/en     To subscribe using Apple Podcasts:  https://podcasts.apple.com/us/podcast/thinkenergy/id1465129405   To subscribe using Spotify: https://open.spotify.com/show/7wFz7rdR8Gq3f2WOafjxpl   To subscribe on Libsyn: http://thinkenergy.libsyn.com/ --- Subscribe so you don't miss a video: https://www.youtube.com/user/hydroottawalimited   Follow along on Instagram: https://www.instagram.com/hydroottawa   Stay in the know on Facebook: https://www.facebook.com/HydroOttawa   Keep up with the posts on X: https://twitter.com/thinkenergypod   Transcript: Energy Policy Deep Dive with Nicholas Rivers (Part 1)   Fri, May 24, 2024 11:55AM • 52:17 SUMMARY KEYWORDS emissions, policy, carbon, price, work, canada, carbon pricing, technology, government, cost, climate change, electricity, big, emitters, action, ontario, regulations, podcast, climate, energy SPEAKERS Nicholas Rivers, Trevor Freeman   Trevor Freeman  00:07 Welcome to think energy, a podcast that dives into the fast changing world of energy through conversations with industry leaders, innovators, and people on the frontlines of the energy transition. Join me Trevor Freeman, as I explore the traditional, unconventional and up and coming facets of the energy industry. If you have any thoughts, feedback or ideas for topics we should cover, please reach out to us at think energy at hydro ottawa.com. Hi, everyone. Welcome back. We've talked a lot on the podcast about how climate change is a big complex problem. And the entity transition that is already underway is also a big complex undertaking. These things require complex solutions to address them, it's not a single thing that's going to solve this for us. You know, we often think about solutions as being some kind of technology, either an existing technology or something that we're going to innovate on or invent in the future. And we talk about a lot of those on the podcasts, everything from heat pumps, to renewable generation to grid modernization. But technology doesn't just exist and grow in a bubble. And we can't just rely on technological solutions on their own to solve climate change or to help continue the energy transition. There is also a need for other approaches, for example, Social approaches, you know, we need to educate people on what climate change is and how it works and what we need to do to change it. We need to motivate people, we need to rile up people to create that desire for change, and create the political and social will to go behind that. What are the key drivers to help advance all of these different moving parts, if you will, is policy our policy solutions, you can really think of policy as the foundation or the bedrock upon which all these other things are built. And when we talk about policy, we're talking about all different levels. So from the federal government, to provincial governments, who are municipal governments, and you know, this is the Canadian context, we're in Canada speaking about this. So if you're listening from a different country, you know, slot in your various levels of government there. Our policy solutions are what push or pull certain actions. And I'm sure we're all familiar with the sort of carrot and stick analogy. Carrots being those things dangled in front of us to help us move towards some more desirable action or desirable state sticks being you know, the sort of prod or push that are going to, you know, help push us into something or away from something else. These policy solutions are really designed to make a desirable action easier and more likely, and to make an undesirable action harder and less likely. So in the context of climate change, for example, the desirable action might be the adoption of cleaner technologies, like EVs or renewable generation, or speeding up the development and adoption of new technologies, where the undesirable action might be just the status quo like doing things, the way we've always done them, we know we need to change that's an important piece, or the undesirable action might be just the continued use of fossil fuels, we need to move away from that that's the undesirable action that's not going to help us solve climate change. And so we're going to talk about policy today. And I'll talk about our guests in a minute. But I think it's important to also remember this next piece, and that is that policy is tough. It is tough to know what will work and what won't work. It's tough to know what the thing is, that's going to really create the desired action you want, that people are going to get behind. policy can be uncomfortable, as I've said, policy prioritizes certain actions over others. And we've talked about this before Canadians and more broadly, people, we are not homogenous in the way that we think or care about things we don't always care equally about the same things. We all have different pressures and drivers in our lives. We all have different contexts in our lives, and so naturally, our priorities aren't always going to line up. And when you have a policy that is designed to prioritize certain actions over others, some portion of the population is going to disagree that that's the right priority. And in practical terms, it's usually a bunch of different portions of the population that agree or disagree in varying amounts. Policy is often designed and applied in what you might call a scientific way. So certain policy tools have expected outcomes that can be measured. There are, you know, metrics that go behind these things. But policy is often received by the general public in a very decidedly non-scientific way. In fact, we typically receive policy in a more emotional way, how we feel about some new policy really is what drives our opinion and our action around that policy. And that's more so than maybe the data will drive our opinion in our actions. In fact, the way that we look at that data is often influenced by sort of our emotion around how we feel about something. And I'm not saying that's wrong. That's kind of just human nature. And we all do it no matter what your I guess political leaning is where you fall in the spectrum. We all do this with, with policy, with the direction that our government is taking. But knowing that is helpful, and it lets us check in with ourselves against that, you know, are we really looking at things just based on the merits based on the data, or what is the emotion that we're feeling about certain things, I think that's important. So with that preamble, my guest today is here to help us pull apart the suite of policy tools that are already playing a role in helping us decarbonize and tackle climate change and some of the things that might be upcoming, or other options that are out there. And I'm gonna say off the bat that there's a lot to talk about here. This is quite a long conversation. So we're actually going to split this into two pieces. We'll have part one and part two, and kind of break it up into two different episodes so that they're a little bit easier to get through. But I'll say in advance, I appreciate you sticking through. I think this is an important topic of conversation and, and my guest today knows a lot about it. So I'm happy to have Nicholas Rivers on the podcast today. Nicholas Rivers is a Professor of Public and International Affairs from the University of Ottawa. His research focuses on the economic evaluation of environmental policies. He is a member of the Canadian climate Institute and served as a co editor of the Journal of Environmental Economics and Management, and was previously a Canada Research Chair in climate and energy policy. Nick regularly provides advice on energy and climate policies to federal and provincial governments, as well as nongovernmental organizations. So Nicholas, welcome to the show.   Nicholas Rivers  07:32 Thanks for having me on, Trevor.   Trevor Freeman  07:34 So let's start with a little bit of background, can you give us a sense of how you got to where you are today, and really specifically how you came to be passionate about environmental policy?   Nicholas Rivers  07:44 Okay, well, this is something where, you know, maybe it's easy to look back and paint a linear trajectory. But certainly, this is not, this was not the aim. From a young age, I didn't have career goals, I would say leaving high school had no idea. I had been pretty good at math and, you know, a tinkerer. I liked playing with capsula, which was this cool, mechanical toy, and Lego, and that kind of thing. And so I did engineering, without really an end goal in mind. I did mechanical engineering. And at that time, you know, when I was in my late teens, early 20s, I started reading books about kind of nascent books about climate change books about energy, I had friends that were really active in the kind of energy and environmental movements, and started to realize that that's maybe where I wanted to focus, my energy, my own energy. And so in my mechanical engineering degree, I wanted to start working on renewable energy, which was really at the beginning at the time, this was the late 1990s. So at the time, there was one wind turbine in Ontario. I went to visit it during my mechanical engineering degree, the Pickering one, right. It was up. No, it was up on the Europe like you're on the Peninsula, Brisbane and so Okay, gotcha, right by the British nuclear station. It was a test one, it wasn't a big commercial wind facility. So I was just like, digging around trying to find interesting stuff. And wind turbines look really interesting because they were big, and they were in moved and they you could see something they were doing. I didn't end up working in wind facilities. I ended up getting some jobs and hydrogen worked with Ballard and Hydrogenics as a co-op engineer. So that was my kind of foot in the in the renewable world. And I have to say, I didn't really like it all that much. I was doing, you know, I was in the field that I kind of wanted to be in the engineering field. And it's working on renewables, but the jobs I was doing didn't appeal to me. So they were really kind of small bits of the renewable energy picture and I was reading the books at the time by Amory Levin's and if you come across him or Paul Hodgkin and they were talking about big system transformations. And that's what I wanted to get into. And here I was figuring out the right radius to bend a pipe that transferred humidity from one stream to another. And it just wasn't jiving with the big picture that I was interested in. And so I ended up going back to university after my undergraduate degree, to study resource and environmental management with Mark Jackered, at Simon Fraser University. And Mark is one of the people that's been really central in thinking about energy policy and environmental policy in Canada over the last, I guess, like four decades now. And I think exposure to the way he was thinking and the way I was taught to think in that program really got me interested in and working on energy and environmental policy on a kind of as a career, and expose me to the possibility that you could work on this right, as a high school student leaving high school, you don't think that there's jobs working on energy policy, so it wasn't something I had in mind from for a long time. I'll also say, I grew up in a family that I don't know if they were environmentalist, but certainly fought a lot about the environment, you know, bird watching, and hiking, and that kind of thing. I was outside a lot when I was young, and I still like to be outside all the time. So I think there's, I've always had that kind of affinity for the environment. But this was a way that I could kind of blend some of my math skills or some of my interests and tinkering with, with some of those kinds of environmental affinity.   Trevor Freeman  11:31 Yeah, I mean, this is definitely not an episode where I need to give my backstory, but there's so much of what you said that, that I relate to from drawing a connection between playing with Lego as a kid and ending up in engineering school, that's totally my pathway as well, and being you know, good at math, getting into engineering school, and then realizing, hey, there might be something else out here through a project. And so I did my fourth year design project, just on a whim on a green roof for one of our university buildings    Nicholas Rivers  11:59 Ah cool.   Trevor Freeman  12:00 I would say that's kind of a point where it pushed me into this more sustainability focused career. So great to hear that. Thanks for sharing that. And certainly, I can appreciate the lack of linearity and a lot of careers in this space, and really the    Nicholas Rivers  12:14 Exactly, yeah    Trevor Freeman  12:15 everything. So. Okay, so the topic here, we're talking about today's policy. So I want to have you help us understand what is the history of decarbonisation policy in Canada? You know, we're at a point today, and we'll talk about maybe where we need to go moving forward. But what has come before this? When did we start seeing policies focused on reducing carbon in Canada, give us a bit of a crash course on our history so far.   Nicholas Rivers  12:45 Sure, I'll do my best. It's not that new. Right. We've known about this for a long time. In fact, I teach a course on climate. And, you know, in digging around for that course, we have studied climate change for over a century. The first, I think, relatively modern looking predictions about climate change came in the 1800s, the late 1800s. And so we have had a pretty good sense of where we're going for a long time. The first real government assessment of the severity of climate change came in the 1960s. This was a US government and national assessment, National Science Assessment. And it pretty much got the contours of the problem right, in the sense that we haven't, haven't changed our understanding of the science of climate change all that dramatically since the 1960s. The projections from that time still hold out today. In Canada, we didn't act quickly after the 1960s reports in the US, although we certainly followed them. The first thing Canada did, I would say, was hold a big international conference on climate change in the late 1980s, in Toronto. And this is a period, you know, when we were holding a number of these big international conferences on sustainable development, for example, or on climate for the first time, and Canada did its part in Toronto in '88 by holding this conference called the World Conference On The Changing Atmosphere. And at that conference, it was recognized that we can't keep going the way we are on climate. It's not sustainable, we're going to end up with more of a warmer world than we want. And we promised at the time, to reduce emissions by 20%. From those levels in the 80s. By the beginning of the century, by the beginning of a new millennium, which we didn't do. We didn't do it. Of course, yeah, this is gonna be a kind of recurring theme. It didn't do much in the way of policy, you know. So I think something we've learned is that just saying, we're going to do something doesn't amount all that much. But we've done that a number of times, and we started doing it in the 1980s. We didn't really start following up with proper policies, and by proper policies, I mean, policies that compel emitters, anyone who emits emissions to change their behavior in some way, either by replacing a technology or, or changing their actions. Until I would say the middle of the first century, or the first decade after the new millennium, so around 2005. And at the time, it wasn't the federal government that was really in the driver's seat on climate policy. It was the provincial governments. And so we saw at the time, British Columbia's government started experimenting with a carbon tax. We saw Alberta's government implement some restrictions on industrial emissions, we saw the Quebec government implement some, some transport industrial policies. We saw Ontario phase out coal fired power starting in 2007. And so it was really the provincial governments that were in the driver's seat, the federal government, you know, it was starting to tinker. But the federal government didn't really begin to take a really strong position, policy wise on climate change until around 2015. And that was the point when the federal government convened the provinces to get agreement that they should all move forward on implementing carbon pricing. All the provinces agreed except for one at the time. And so they all brought in a carbon price, either it was the federal carbon price that was imposed, or the provinces imposed their own carbon price. And that was the beginning really, of a whole slew of other policies and regulations. So since that 2015 period, I would say the federal government has really been more in the driver's seat on climate policy, and has implemented things like regulations on methane emissions, as has required the phase out of coal fired power, which is actually by 2030 of the requirement, but it's actually proceeding quite a bit quicker than the federal requirement. It's also got this carbon price in place, it's bringing in policies to require a complete cleaning of the electricity grid, a cap on oil and gas emissions and regulations on zero emission vehicles. And so really kind of multifaceted regulations coupled with this carbon price. And increasingly over the last couple of years, we're also seeing them coupled with pretty big subsidies for structural transformation of the economy. So you're seeing this play out in Ontario with battery plant investments, for example. And so I would say that's the policy kind of history, we're seeing a pretty slow start. We've known about the problem a lot longer than we've been acting on the problem. We saw ramp up provincially, after the millennium, and that we've seen the transition from the provinces to the federal government taking leadership on this file for the last decade or so.   Trevor Freeman  18:01 And as you said, like, slower than fast, but more to come. We're not done where we are today is not where we need to be. Yeah. So there's lots to talk about.    Nicholas Rivers  18:11 Yeah, exactly. Good point. So we, we've our admissions, not surprisingly, in the absence of any policies kept on growing up until about 2005, when we started bringing in policy. Until that point, it was like, received wisdom, that anytime the economy grew, which it mostly does every year, greenhouse gas emissions would grow with it. And that that held for a long time, like maybe even a century leading up to around 2005. And then policy really started to break that chain. And so we've seen a decoupling of economic growth and greenhouse gas emissions in Canada, as well as most other rich countries over the past decade and a half or so. But emissions aren't falling fast. In fact, they hardly even fall. They're falling from where they would have been, but they're not, they're more or less flat lines in Canada are beginning a very slow decline. Yeah. And we've got a maybe it's worth saying, one of the things that we've learned from the climate scientists is that emissions have to go to zero. There's not, you know, we can't solve this problem with modest cuts in emissions, which is where we're at right now that you can think of this as like filling up a bathtub with a tap, and the bathtub is going to keep filling until the tap comes off until the tap turns off completely. And so the goal, the end goal here, if we want to stop the world from heating up is stopping all emissions. And I think that's something that it took me a long time to appreciate. But it's something that I think is transformative and thinking about environmental policy.    Trevor Freeman  19:45 Yeah, that's a great point. And I think that really underpins the conversation today of seeing the role in policy to start decoupling what else is happening in our society with our emissions levels, and I think we're going to pick apart some of those Pacific examples during our conversation. So you brought up carbon pricing. I think everybody listening to this podcast, probably would agree that's, you know, at least the most public if not the signature national decarbonisation policy in Canada today, it's the one that certainly gets the most notice and the most discussion. So I want to start there, I want to pick it apart a little bit. I mean, to say that it's a divisive issue would be kind of an understatement. Help us understand how carbon pricing works in Canada today? What is our current scheme that we have in this country?    Nicholas Rivers  20:37 Good question. Okay, let me start out by saying what's the point of carbon pricing? Because I think it's not evident for lots of people, it seems like a crazy idea. The basic idea is that we live in a market economy. And a market economy is one where the market responds to the cost of producing something and the desire of people to buy something. And so the market sets the prices, and the market determines how much gets produced in response to the prices and how much people buy in response to the prices. It's not directed by some other entity, as a market economy tends to work best when the prices of things reflect their costs. So if I want to go buy some bread, the idea in a market economy is that the price of the bread that I buy should reflect the cost to produce the bread, right, the cost of the grains that are used to make it and the cost of labor, and the machines that are required to make it. And if that does reflect the cost, and there's a motivation for the bread maker to make the bread for me, and, and so it'll be there when I want to buy it. And the idea that behind this carbon pricing is that there is a cost to me producing carbon emissions. Right? So the cost is it makes the world a little warmer. And there's a cost in lives and livelihoods, and wellbeing, from climate change. But I don't pay a price, right, I don't pay the cost, I'm not required to pay the cost because this is a non market good. No one's producing climate change at the public good. And so the idea behind carbon pricing is, hey, the market doesn't work for this kind of good. One way we can fix it is by attaching a price to carbon emission. So it's just like bread when people use it, they have to pay the price to reflect the cost. And so that's the kind of basic fundamental and the, the idea that economists have had for a long time, is that if we properly price carbon emissions, people are going to use an awful lot less of them, because now their actions reflect the costs. Okay, so that's the kind of basic idea behind carbon pricing. Canada has brought in a carbon price federally in 2019 provinces implemented carbon prices, some of them much before that. So Alberta brought in an industrial carbon price in 2007. BC, brought in a carbon price throughout all emit for all emitters in 2008, and Quebec, as well. So, so the federal carbon price now is kind of the law of the land, in the sense that, in that 2016 meeting that I mentioned, where the federal and provincial governments agreed about carbon pricing, the agreement was we should all have a carbon price, let's make this a level playing field, let's all do our piece. And the federal government kind of took that message back and developed a federal carbon pricing benchmark, which said, Hey, provinces, you can do your own carbon price, as long as it's at least, you know, this certain level of stringency. But if you don't do it, we'll bring in our own federal carbon price in its stead. Okay, so provinces have the ability to do something on their own. And if they don't do anything, the federal government will, will bring in a carbon price. And so what we've got now is a kind of a system that's a bit piecemeal, where some provinces have their own carbon price and other provinces have not implemented a carbon price. And the federal government has brought one in and put in their place, the Federal carbon price as two parts. One is a consumer facing part. So for people like you and me, and for people or for institutions that are not giant emitters, like a university or hospital or a mall, for example. They all are subject to what the federal government calls a fuel Levy, and what the rest of us call a carbon tax. Big industrial emitters, like a pulp and paper plant or a steel plant, or a big electricity generator, are subjected to a different scheme. It's still a carbon price. But the way it works is a little different. And it's called an output based performance standard. So I'll speak briefly, on the industry side, the way it works is that each facility that produces a lot of emissions gets a target, then it's usually the same target for everyone in the sector. So at the target could be like, the target is for a steel sector, you have to produce steel with a carbon intensity of less than, say, one tonne of carbon per tonne of steel that you produce. So they get that target and if they managed to get their facility emissions below the target, they get a reward in terms of a carbon price, and if they their emissions are above the target, they have to pay a carbon price   Trevor Freeman  25:38 A financial reward. So they get some sort of incentive to be below that benchmark.   Nicholas Rivers  25:42 They basically get carbon credits, which have a financial value that you can trade them for dollars. So that's the way it works on the industry side. On the smaller emitter side, like you and me, it works a little differently. There's a levy on fuels. So any fuel that we might buy, like natural gas, or gasoline or diesel that contains carbon, or releases carbon, when it's combusted, is imposed in proportion to the amount of carbon that's released from that fuel when it's done. But, you and I are required to pay that fee. Now we don't pay it directly to the government, it's imposed at the retail level. So, you know, the gasoline station will pay the fee on our behalf, but then it'll raise the price of gasoline in the amount of the fee.    Trevor Freeman  26:33 Gotcha.    Nicholas Rivers  26:34 That's the main part of the system. The other thing with respect to this consumer carbon price, is that all that revenue that the government collects, is put into a pot. And then it's rebated back to us that, and you've probably heard about this, if you check your bank account, there'll be a Canada carbon rebate in your bank account, or at least each household will get one not each person.    Trevor Freeman  26:55 That's right.    Nicholas Rivers  26:55 So it depends on who to file their taxes First, each household who gets the rebate. So you want to be the first in your household to get your taxes done. But the money basically is raised from consumers in proportion to how much fuel they burn. And then the government collects it up, and rebates it back to consumers equally for all households. Okay, so a lot of people are confused about these parts, like why would they go to this trouble? Why would they raise money and then rebate it back? And this is an important point. This isn't a traditional tax, right? And then traditional tax governments implement the tax to raise revenue to, you know, buy or build a bridge or to fund a school or something like that. That's not what's going on here. The point of this fuel levy or carbon tax is to provide incentives for people to change their behavior. And in particular, it's to fix this market failure we talked about earlier with the cost of carbon emissions not reflected in their price. And so when the carbon price gets high, it will make a lot more sense for us as individuals to choose the low carbon action, as opposed to the high carbon action and save money doing it. And on the rebate side, the rebate is designed so that we don't get punished, we don't lose our you know, we don't become lower income as a result of this. And so it goes back to each of us equally. So no matter whether I do this, you know, whether I take the low carbon action, or I don't take the low carpet action, I get the same amount of rebate back regardless.   Trevor Freeman  28:26 So it opens the door, then to give people a little bit of control to work within the system to their own economic benefits.    Nicholas Rivers  28:35 Exactly.    Trevor Freeman  28:36 So if I can reduce my emissions and reduce my costs, I'm still gonna get the same amount back, but I'm going to be paying less of it.    Nicholas Rivers  28:42 You'll come out ahead.    Trevor Freeman  28:43 Yeah, it incentivizes me to do lower carbon things. So I pay less of that.    Nicholas Rivers  28:48 Exactly. That's the idea.    Trevor Freeman  28:49 Great. So I mean, the big question mark around all this. There's a lot of questions, obviously. But one of the big ones is, is it working? I mean, it's been in place, as you said since 2019. And in various forms across the country. Are we seeing the impact or the results that we as a society, or specifically the government intended to see from this? Are we reducing our fossil fuel consumption?   Nicholas Rivers  29:12 Yeah, I gotta give a two part answer.    Trevor Freeman  29:15 Sure. Yeah.    Nicholas Rivers  29:16 The first answer is, yes, it's working. So we've got dozens of studies that have looked at carbon prices in various jurisdictions around the world and use the data that we are able to gather to ascertain that yeah, carbon prices worldwide are definitely reducing emissions. Now, they're, they're not cutting emissions to zero, which is our goal, right? There's nowhere in the world that has implemented a carbon price and got emissions to go to zero. And you can see that in Canada emissions are basically flatlining. And so is it working? Yes, it's cutting emissions relatively where they would have been otherwise. But where it's not putting us yet on a trajectory towards getting to zero emissions. So emissions, carbon prices are still relatively low, worldwide and in Canada, and we don't really know what will happen when they ramp up to levels that might be commensurate with getting to zero emissions. But the initial forays into carbon pricing that we've seen around the world have suggested that this is definitely cutting emissions. Let me answer part two.    Trevor Freeman  30:22 Sure. Yeah.   Nicholas Rivers  30:23 And to part two is we don't really know that we don't really know because Canada implemented a carbon price nationwide in 2019. And so we don't have another Canada that didn't implement a carbon price in 2019. But everything else was exactly the same. To compare to, that's what we want to know, if we want to know that the carbon price worked, we would really want to have two Canada's and put a carbon price in one and not put a carbon price in the other, and then compare the two. And we don't have that. And in that sense, this is the same problem as we have for any big economic policy, or any big social policy or any big policy of any kind. We don't really know, for example, if single payer health care works, and then we don't have another candidate without single payer health care, but uh, we can, you know, have some proxies to think about whether it works, we can look at other jurisdictions that don't have single payer health care and try to make some comparisons. But we don't really know what would happen in Canada if we took away single payer health care, because we don't have another candidate without single payer health care. And so there are lots of studies that suggest that carbon prices are working. But we don't have, you know, that rock solid evidence, that of exactly what emissions are being cut by this, this carbon price in this context.    Trevor Freeman  31:39 Yeah, and I think that's partly why I talk about this a lot on the podcast with different guests on different topics. And it applies at the macro level with something like national policy, but also down to the micro level with, you know, what, what are individual utilities trying to do to meet the demands of the future, there really is not likely to be a single strategy that is going to get us where we need to be. It's not like we can pick that one. Policy, that one piece of technology. That's, that is the answer. That's really going to get us there. And I think that probably applies to carbon pricing as well. It's a tool in the toolbox.    Nicholas Rivers  32:16 Oh, absolutely. But I mean, I mean, let's just say that that's not what's what's happening. There were no governments, either provincially or federally, that have said, Okay, we're all in on carbon pricing. Now, we're done with our climate policy.    Trevor Freeman  32:29 Yeah   Nicholas Rivers  32:29 That's not at all the picture in Canada. So let's not, I don't want to paint that as, as the picture because as I opened up this podcast saying, you know, Canada's done a ton in the last decade on climate policy, including things like vehicle standards and coal phase out and electricity and low carbon fuel standards, and I could the list goes really, on and on.   Trevor Freeman  32:51 Yeah, and I will definitely pull apart some of that, I think. So my next question on this is, as I mentioned, this is a divisive topic, there are differing ideas around carbon pricing, whether we should have when how it should apply. And the nature and the beauty and the frustration of our open democratic society is that we could very well pick a different direction. In the near future, we may have a different government next time around, that government could choose to do something different. What are other options out there? That might still factor in the fact that there is a cost to emitting carbon, but be a different strategy than the existing carbon pricing? Or is there another strategy out there? Or is there not?   Nicholas Rivers  33:39 Yeah, for sure, you can reduce emissions without a carbon price. The carbon price is one way of reducing emissions and it does have its appealing parts. It's appealing because it allows people some flexibility to respond in the way that suits them best, you know, I can either pay the carbon price or I can reduce emissions and not pay the carbon price. And, and for that reason, it's seen as a relatively economically efficient approach to reducing emissions. But there are other ways I would say the two big other ways are regulatory approaches, and incentive based approaches. So let me go through what those look like. In a regulatory approach. We don't say, here's the financial penalty for carbon emissions. Now figure out what you want to do, like a carbon price, we say here's exactly what you should do or what you have to do. And so a regulatory example would be we've got lots of these nationally, and provincially. But a regulatory example might say you can't generate electricity with coal fired power anymore. Okay, that's a regulation or it might say, you have to cut your emissions by 10% this year and every year going forward as silver it. So certainly regulatory approaches can work, they often seem to be less flexible than a carbon price, because you don't give emitters the choice of how to respond to you imposing upon them. And so that requires the government to know quite a lot about you know, what's feasible and what's appropriate for different situations that it doesn't need to know, in the carbon price case, it didn't. So if I want to regulate you, Trevor, and to do it in a way, that's reasonable, I got to know a lot about your life to know like about what you're, you know, what possibilities you have to reduce your emissions, before I can choose some appropriate, you know, regulations to impose on you. So if I tell you, you have to use a heat pump, and then it turns out you live in a house that is not amenable to a heat pump. I've kind of made life difficult for you. Yeah. So regulations certainly have a lot of potential and, and they are being used in contexts where the kind of technology has become more clear. And I think they have a lot of, they can play a big role, they are playing a big role in driving down emissions. So again, in cases where technology is relatively clear, and there's less of that kind of work in that situation, this doesn't work in this other situation. Another approach to reduce emissions would be an incentive driven approach. So you could think of a carbon price as a disincentive, right, every time you produce emissions, I'm going to charge you. And an alternative approach would be anytime you do something that reduces emissions, I'm going to reward you. And so we have that happening here as well. So there's subsidies for heat pumps, for example, or electric vehicles. We're seeing subsidies for construction of electricity, electric, battery, battery, electric plants. So this is certainly part of that role as well. I feel like subsidies play a useful role in really nascent technologies, but driving decarbonisation with subsidies, it my view is going to be, we're not going to be able to afford the cost as a government, it's going to be too much for the government to try to replace everyone's heating system. With a subsidy. I think we're finding that out. In the case of the green Homes program, the government has pulled back here as a sight into fiscal cost.   Trevor Freeman  37:16 Exactly, yeah, it's popular because it helps, you know, those early adopters get that more expensive piece of technology. But to your point, we can't pay for every single one of those units, we can't provide that incentive. So it's creating more of an ecosystem that makes those make more sense.    Nicholas Rivers  37:31 Yeah.    Trevor Freeman  37:32 Okay. So that's great. Thanks very much, Nick, for enlightening us that we could probably spend an entire episode no question just talking about that. But I do want to push forward here on to some of these other questions. I want to dive into some specific sectors of our economy or some specific issues and understand from you the role of policy and help us drive the change that we often talk about on this show. So given the kind of where I work, and the nature of these podcasts, electricity is a big piece for us. So a constant theme on the show is how electricity is really one of the main tools that we have to decarbonize, we all know that a lot of aspects of our life that are not currently run by electricity, like our transportation and our heating, we are going to move to that fuel source as as our heating or transportation method. We're pretty fortunate in Ontario, that we have a really clean grid, it's a little bit over 90%, emissions free, meaning, you know, most of the generation of our electricity doesn't create GHG emissions. But there are other parts of the country that do rely more on fossil fuels. And to your earlier point, 90% is good, but it's not 100%, there is still that 10% that we need to decarbonize. So what are some of the tools in place now? Or something? Some things that are being considered that will help us move toward totally emissions free electricity generation in Canada?   Nicholas Rivers  39:02 All right, good question. So electricity is a big source of emissions on its own, producing about 10% of Canada's emissions. And as you point out, it is the central tool, which we're hoping to use to decarbonize all the other sectors. And that only works if the electricity industry is clean. And so I think you're right to point out, this is one of the first things we've got to tackle. Unfortunately, it is the big success story in Canada, emissions have been falling rapidly in electricity generation in Canada. And it's because of policy especially. One thing that we've done that's been really effective, and I mentioned it earlier, is an explicit policy to phase out coal fired power generation. coal generation produces about twice as much greenhouse gas per kilowatt hour generated as natural gas. It's very dirty. And so it's the first So you want to do what to tackle. And so Canada's federal government brought in a policy that said, by 2030, there shouldn't be any more coal generation on the grid. That's, it's a little late to the game. And that I mean, this is, I think, an important policy. But Ontario started phasing out coal in 2007. And I believe it was finished by phasing out coal in 2014. And that's why, to his credit, so clean right now, I learned as part of another project that Ontario had the biggest coal fired generation station in North America, which was one of the ones that was closed. As part of this, this coal phase out big local health improvements, as well as greenhouse gas improvements.    Trevor Freeman  40:37 Yeah, that's important to say to you, there are other ancillary benefits here to policies.   Nicholas Rivers  40:42 I think, even if coal didn't produce greenhouse gas emissions, it would be worth closing it. And in fact that that was the reason for Ontario's coal phase out was a policy by the Canadian Association of Physicians for the environment that was worried about local health impacts, and they are dire, we lose about 10 million people worldwide every year from air pollution. So it is a sector that's really worth tackling on its own even without greenhouse gas issues. But it is a big greenhouse gas emitter. And that's the first thing we want to do. And we're being successful, there are some coal fired generating stations left in Canada, but they are many fewer than they were a decade ago. And, they will be phased out by 2030. I think before 2030, in most cases. Aster coal, which is the dirtiest fuel, we've got to tackle natural gas. Natural gas is going to be the main source of emissions in our electricity sector, once the coal is gone, and we're not yet in a position to get rid of natural gas from electricity grids. Natural gas is super useful, because it can ramp up and down really quickly. You can, I mean, I'm not an Electricity System Operator, but my understanding is you can basically flick the up switch and electricity, the gas turbine will go up, you know, in terms of power output pretty much right away. And then you can press the down switch and go down right away. That is not at all the case, for example, with a nuclear power station.    Trevor Freeman  42:06 Exactly. Yep, exactly.    Nicholas Rivers  42:08 And so gas is useful. And it becomes more useful when you put a lot of renewables on the grid, because renewables do fluctuate quite quickly. And, you know, if the sun goes behind the cloud, for example, or if the wind hits a gust, and so you want to be able to respond to those fluctuations with some other source that can go up and down quite quickly. And so we're using that natural gas for that role right now, that backup role. And, and there's not a, there's not a straightforward substitution for all of that gas capacity right now. I think in the near term, what we want to do is stop using or dramatically slow down using natural gas, for providing bulk energy. So bulk energy, I mean, not this kind of quick response function that natural gas plays, but the kind of 24/7 kind of energy that that we also need in society, we should be trying to displace gas's role in providing that, and we can do it relatively cost effectively. Now, with wind and solar electricity or nuclear power in Ontario.    Trevor Freeman  43:11 Yeah, that's our base load is what we call that So absolutely, that that load that's always there, if we can make sure that load at least is completely carbon free, that's a big win for sure.   Nicholas Rivers  43:21 Exactly. And so I would say be looking for opportunities to get wind and solar, and maybe nuclear or geothermal to be providing that bulk energy and start retaining natural gas for uniquely that backup role. And we're starting to see regulations that are developed with that aim in mind. So Canada is currently consulting on what it calls its clean electricity regulation, which is designed to basically limit gas to a backup role by 2035. So it is a regulation that is intent on getting rid of gas as a provider of bulk energy, and limiting it to only providing, you know, a certain number of hours of year of backup capacity. So it's not saying you can't have gas on the grid, but it says you shouldn't be using gas to provide your main source of power. Gotcha. So that's a policy that's not implemented yet. It's being developed. It's being consulted on and we'll see what the final version of that policy looks like. But I think that's basically the right angle to be trying to limit gas to smaller contributions. And eventually, we're going to want to figure out another source of energy that can provide that kind of high frequency or high reliability backup power. And that's tricky to do. Because gas does play that unique role. And so it's not something we need to do right away, but it's something that we should be thinking about how to provide that in the future.    Trevor Freeman  44:55 Yeah, I mean, that raises a great point and kind of leads into my Next question really well. There are certainly things we need to develop, things we need to figure out moving forward on, not just the policy side, but the technology side. In order to address what we have to do for climate change, what role does policy government play in supporting research and development of accelerating these new technological advances that we need, you know, in short order here?    Nicholas Rivers  45:29 Another good question. Okay. Let me start by saying, for our short term climate goals, and our short term climate goal nationally, is to reduce emissions by 40%. By 2030, an ambitious goal, we have the technology we need.    Trevor Freeman  45:44 Yeah   Nicholas Rivers  45:45 The IEA, the International Energy Agency, the Canadian climate Institute, have done reports that try to figure out, you know, what we might or what pathway we might follow to get emissions down to 40, or 50%. And the common assessment, and I think it's reasonable, is that we have what we need to cut emissions by half. So we don't need to invent anything new, right away. But to cut emissions to zero. And this is like a mid century 2050 kind of goal, we probably do need to invent some new technologies. Some things like I just mentioned, like figuring out ways to produce firm power. So that kind of firming role that natural gas plays that's clean, would be an example, or figuring out ways to provide zero carbon, long distance transport, or zero carbon, concrete or cement, for example, yet another example. So we do have things to figure out, by all means. I would say the government can play a really big role here. And the government does play a big role here. Maybe we're thinking about how technology gets better. Before we start thinking about what the government can do. technology gets better in two big ways. One is, like before it's ready to be sold on the market. technology gets better through a deliberate research and development process. And so this is firms, or universities or national labs, working on, you know, new types of renewable energy. There's lots of work, for example, new types of solar cells happening right now, or new types of batteries. And this is like the deliberate efforts to invent new technologies for research and development. But the other big way that technology can improve is through the deployment process. And in fact, I think most of the big cost improvements for new technologies happen on the latter side. So it's like we've left after we've invented the basic technology, the scale up process, the economies of scale, deliver big cost gains, and performance improvements. And what we call learning by doing. It's like this process of just getting better at doing something by doing it lots of times. And solar is a really good example of that. You guys have probably talked about how solar on this podcast is so important, but solar has fallen and cost 1000 fold over the last 40 years. Yeah, 1000 fold that's crazy. And much of the cost decline, adults, especially over the last 15 years, has been learning by doing has been us just getting really good at squeezing out all the inefficiencies in the manufacturing process and, and very small improvements, but continuous improvements in the efficiency process of like actually harvesting the solar energy in the cell, such that the cost has continuously fallen by by, well, I don't know exactly the number per year, we talked about a learning curve, falling per number of technologies deployed. So every time solar installations double, we tend to see about a 15 to 20% cost decline.    Trevor Freeman  48:57 Gotcha.    Nicholas Rivers  48:58 And so I would say that that learning process is important as well. And the government can play a big role in both of those processes. Right? It certainly supports basic research and development. And this can be academic or industry research. Candidates don't do a great job on this front, we have quite low return development, investments compared to poor countries, and so are kind of free riding on on r&d investments compared to more innovative countries. And then the other big role for the government would be in helping to deploy new technologies and spur along that learning by doing process. And so that could be like providing niche markets for new technologies or through government procurement. You know, government could might say even though this new technology is a little more expensive, we can see it has a long term future and we're gonna we're gonna we're going to commit to buying it for government purposes, and government itself is a really big market, so that can be a big incentive for them. For cost declines, and it can just, you know, spur deployment. So we're seeing that with electric cars right now, the government is providing subsidies for people to buy electric cars. And one of the reasons that it does that is to help improve the technology.    Trevor Freeman  50:13 Yeah, and just for our listeners out there, you know, what, what Nicholas is describing is not unique to green technology to climate change technology. This is sort of a standard approach for technology development over the last, I don't know, centuries. Is that fair to say?    Nicholas Rivers  50:31 Yeah, the early ones, the reports that I've seen on learning by doing came from airplane manufacturing, right. So when people were learning to make wide body airplanes, researchers observed the same kind of cost improvements in that process, as we're currently observing in, for example, batteries, or electrolyzers, or solar panels.    Trevor Freeman  50:52 Yeah. And that's, that's encouraging, and that we kind of know as a society, how to help technology move along, if there's the political will. And then if ultimately the market decides, yeah, this is something we want, then that iterative process can happen to help get that cost down, as you said, learn by doing, figure out the installation cost, figuring out the manufacturing, supply chain issues, and really making a viable technology.    Nicholas Rivers  51:17 Yeah.    Trevor Freeman  51:18 Okay, so it's Trevor here, breaking into my own podcast. We're gonna pause there. As I said, at the beginning, this is really a long conversation. There's a lot to get through. And there's a lot more to that we talked about that Nicholas and I talked about, so we wanted to break it into two episodes. So this will be the end of Part One. Thanks for sticking with us and joining us today, and we look forward to having you back for part two that will be released at our next episode. So thanks very much, and we'll talk to you soon. Thanks for tuning in to another episode of The think energy podcast. Don't forget to subscribe wherever you listen to podcasts, and it would be great if you could leave us a review. It really helps us spread the word. As always, we would love to hear from you. Whether it's feedback, comments, or an idea for a show or guests. You can always reach us at think energy at hydro ottawa.com  

Heat pumps are proving as one method to combat climate change and decarbonize Canada—because they can operate at 300% efficiency (or greater!), while a standard furnace runs between 93–94%. In this episode of thinkenergy, Hydro Ottawa’s Shawn Carr, Manager, Customer Experience, chats his experience using a heat pump in his home. From the upfront costs to how it works and its role in reducing carbon emissions. Listen in for practical benefits of heat pumps and their future in our homes and businesses. Related links   ●       Shawn Carr, LinkedIn: https://www.linkedin.com/in/shawn-carr-6797b612/ ●       Air Source Heat Pump Toolkit: https://natural-resources.canada.ca/maps-tools-and-publications/tools/modelling-tools/toolkit-for-air-source-heat-pump-sizing-and-selection/23558 ●       Building Decarbonization Alliance heat pump report: https://buildingdecarbonization.ca/report/the-cool-way-to-heat-homesinstalling-heat-pumps-instead-of-central-air-conditioners-in-canada/ ●       Trevor Freeman on LinkedIn: https://www.linkedin.com/in/trevor-freeman-p-eng-cem-leed-ap-8b612114/ ●       Hydro Ottawa: https://hydroottawa.com/en    To subscribe using Apple Podcasts: https://podcasts.apple.com/us/podcast/thinkenergy/id1465129405   To subscribe using Spotify: https://open.spotify.com/show/7wFz7rdR8Gq3f2WOafjxpl   To subscribe on Libsyn: http://thinkenergy.libsyn.com/ --- Subscribe so you don't miss a video on YouTube: https://www.youtube.com/user/hydroottawalimited   Follow along on Instagram: https://www.instagram.com/hydroottawa   Stay in the know on Facebook: https://www.facebook.com/HydroOttawa   Keep up with the posts on X: https://twitter.com/thinkenergypod   Transcript: HYDRO_16749_ThinkEnergy_Podcast_May_13_Audio_Final Fri, May 10, 2024 12:03PM • 37:12 SUMMARY KEYWORDS heat pump, electrification, heat, air conditioner, electrify, technology, energy, people, backup, costs, emissions, work, trevor, installed, cold climate, project, ottawa, gas furnace, temperature, ev SPEAKERS Shawn Carr, Trevor Freeman   Trevor Freeman  00:07 Hi, welcome to think energy, a podcast that dives into the fast changing world of energy through conversations with industry leaders, innovators and people on the frontlines of the energy transition. Join me Trevor Freeman as I explore the traditional, unconventional and even up and coming facets of the energy industry. If you've got thoughts, feedback or ideas for topics that we should cover, we'd love to hear from you. Please reach out to us, at thinkenergy@hydro ottawa.com Hi everyone, welcome back. On today's show, we're going to do something a little bit different. We're going to check back in with a previous guests. Just over a year ago, Dan, my predecessor in the host chair, interviewed Sean Carr hydro Ottawa's manager of customer experience about residential heat pumps, and in particular about his own experience with a heat pump installation for his own home. At the time, his heat pump was only about five months old. So now that he's been through another full winter with his heat pump, I thought it would be good to check back in and see how things are going. But before we do that, let me give a quick refresher on heat pumps. Now for those of you energy nerds or people in the sector, you may not need a refresher. But even those of you who aren't too sure what a heat pump is, are probably familiar with the technology. A heat pump is just a device that moves heat from one place to another. The most common example of this that you would be familiar with is a home air conditioner or a refrigerator. Both of those devices take heat, either from the air in your home or from the inside of your refrigerator and move it elsewhere. So over an air conditioner and moves the heat outside and for a refrigerator and moves the heat to the back of the refrigerator onto those coils that gather dust in you might every five years clean off. And they do this in order to make that space colder. A heat pump does exactly the same thing, except it takes heat from the outside air and moves it inside your home in order to make your home warmer. Heat pumps even look a lot like air conditioners, depending on the model. If you walk down the side of my house right now, you wouldn't even know that I have a heat pump. And not just an air conditioner because it looks exactly the same. Now you're probably thinking that's great, except when I want to heat my home, it's typically a cold day in the winter, and there is no heat in the air. But that's not exactly true, there is still some heat energy in the air. And thanks to the wonders of science, a heat pump can extract that heat from the air and move it into your home in the same way that when it's 35 degrees outside. And that's celsius for any nonmetric listeners out there. An air conditioner or heat pump can cool your home. I won't get into all the technical details here. But let's just say if you're not familiar with the ideal gas law, it is doing all the heavy lifting here. And I typically try to make this show not to engineering me but every once in a while I have to throw out a great formula like that. Okay, so now that we remember the basics about what a heat pump is, the next question is why are we talking about them again on the show? Well, if that's what you're thinking, I hate to say it, but this won't be the last time we talk about heat pumps either. In fact, this is the kind of thing that we'll probably revisit a number of times in the future. And that's because heat pumps are such an important technology for decarbonizing the way we heat our buildings, especially residential buildings, and even our water because yes, there are heat pump hot water heaters out there as well. Heat pumps don't use any fuel to create heat, they don't burn anything to create heat, they simply use electricity to move heat. And that makes him super clean. So there are no emissions at all from a heat pump itself, just the emissions that might have been created where that electricity was generated. And they are super efficient. You might have heard people talk about how furnaces are, you know, 93, or 94% efficient, or sometimes even 95, or 96% efficient. So that means for every unit of energy you put into that furnace, you get about, you know, 93 94, or whatever percent of that energy out as heat, you have to put more energy in, then you get out. Heat pumps, on the other hand, use a different scale, something called the coefficient of performance or COP. But it's essentially the same thing. And they can often run around 300% efficiency, and sometimes even higher. So for every unit of energy you're putting in, you get three units of energy out, which is awesome, you're getting more energy out than you're putting in that makes them really efficient. And if we're going to actually tackle the problems that lead to climate change, if we're actually going to decarbonize our society, and I really believe we are because I'm optimistic that way. Then almost every single one of us will eventually have a heat pump heating the space we live in, likely the space we work in as well and heating the water that we use as hot water. Okay, so now that we're back up to speed on heat pumps, let's check in with Shawn to hear how his journey has been going. Sean, welcome to the show.    Shawn Carr  05:12 Thanks, Trevor. It's great to be here.    Trevor Freeman  05:15 Okay, so let's get into it. Let's talk about your experience with a heat pump. Remind us again, what kind of heating system you had in your house and replaced and what did you put in?    Shawn Carr  05:25 Sure, Trevor. So I went from a high efficiency condensing gas furnace to a cold climate heat pump. And I elected to go with electric heat as my backup heat source. And a backup heat source is typically required in our cold climate. And the two most common backup heat options are typically a natural gas furnace, or an electric resistance coil that goes inside your ductwork. So I went with the electric electric resistance coil option.    Trevor Freeman  06:02 Okay, so you totally removed gas from your heating solutions in your house. And for context, can you remind us what is the size of your home and talk us through the economics of your heat pump? What did it cost you? And what remains? What did you qualify for.   Shawn Carr  06:19 So I live in rural Ottawa, our home is approximately 2100 square feet. It's a single storey bungalow, but does have a basement. It was built in 2008. And we were the first homeowners. And so it's relatively modern construction, given that it's only about 15 years old now. In regards to the project costs. So looking back at things, our total project costs for the cold climate heat pump, along with that electric backup system, and I elected to go with some additional controls and bells and whistles. And the project ended up costing us around $17,000, before taxes and rebates. And so maybe just to talk through the rebates a little bit I did receive a $5,000 rebate through enter cans greener Homes program. And I took advantage of a zero interest loan through the greener homes loan program as well, which allows me to pay back that project cost over a 10 year period. With zero interest. Unfortunately, the Enter Ken greener Homes program is no longer accepting applications, it's been pretty successful. But I was obviously fortunate enough to be able to take advantage of that program. So that ended up bringing our total project costs down for the heat pump and backup system to around $12,000. Before Tax, I can say that I do know a handful of people that have gone through and installed heat pumps recently. And I am seeing that the project costs are actually coming down, which is great. My father is actually having a heat pump installed today. In fact, so I'm looking forward to hearing how that project goes. But it's great to see that more installers and companies are now starting to talk to customers about heat pumps. And that's going to make the transition become more feasible than ever for more people. And I do think that being said, if we do want to get to a point where there is mass market adoption, we do need to get the heat pump and backup heat system costs down to a point where they are comparable to a furnace air conditioner replacement project, for example, because people still think in terms of sticker price. And so I do think there's still a bit of work to be done here. But as installers get more comfortable with these heat pumps and manufacturing starts to scale up, I do think we'll see prices come down further.    Trevor Freeman  08:52 Yeah, I mean, it's great to see that we're already seeing movement on that. But as you know, I mean, you and I both fall into that early adopter category and things tend to be more expensive and it will be great when we can get those costs down. So you've been living with your heat pump for over a year now kind of two two winters to cooling or heating season. Sorry. Let's talk about your initial thoughts. Let's start with comfort. How has your comfort been in your home?   Shawn Carr  09:20 Yeah, that's I mean, that's a great place to start. And you know, I will say that we've actually we've noticed some comfort improvements since putting in the cold climate heat pump particularly in our basement actually because we always found that the basement was several degrees colder than it was upstairs the thermostat in our house is on the main floor obviously but since we've gotten the the heat pump installed, we've noticed that the temperature difference between upstairs and downstairs it's actually much smaller. The Delta is much smaller now than it was prior to the heat pump when we were heating with a gas furnace and I think the main reason for that is heat pumps are really designed to run low and slow, they provide a greater volume of air over a longer period of time that that air is being delivered at a lower temperature. But as a result of that we found a more uniform temperature throughout the house just because of how the heat pump was running so much more frequently.   Trevor Freeman  10:22 Great. What about the experience of actually getting installed? I mean, once you made your decision to do this, how was it working with the contractors and getting it installed?   Shawn Carr  10:32 It actually went pretty smoothly. I mean, first of all, we used a contractor that had experience with heat pumps and came recommended. So I think, you know, my advice to anyone who's considering getting one is, you know, get a few quotes, make sure they have experience with heat pumps and electrification or, and are actually recommending this technology. In our case, the total install took about two and a half days. So that includes obviously all the electrical work and running new refrigerant lines to the outside of the house replacing taking the old furnace out and putting the air handler in and installing the backup heat, I think just in terms of space, like the construction footprint essentially was about the same as it was before. So it didn't require more space in our utility room. Basically, we just went from a gas furnace to having a big box that looked very much the same in the same location. And of course, the unit outside looks and sounds very much like a traditional air conditioner. And that's because a heat pump is simply an air conditioner with a reversing valve. So the install was straightforward. Yeah, I would recommend it to anyone.    Trevor Freeman  11:37 Great. Now,I mean, it's interesting, you talk about it being like an air conditioner. We often think about heat pumps as this technology of the future, this thing that we're all eventually going to have in our homes. Is it this futuristic piece of technology that's hard to operate? Or what is it like kind of, you know, setting it and letting it run?    Shawn Carr  11:54 Yeah, so the operation is really straightforward. I think the best way I would describe it is you basically, it's a set and forget system, I think the one thing that we did learn about having a heat pump is we don't adjust the temperature, like the thermostat temperature settings, as much as we did before, when we had a gas furnace, I used to get in the habit of dropping the temperature several degrees overnight, and then having the setpoint higher in the morning prior to getting up. But what we've found is, in particular, with the heat pump, it takes a lot longer for that heat pump, and it has to run a lot longer and a lot harder to reach that temperature setpoint. Again, so in the morning, so what we found is the most comfortable approach was really just to pick a temperature that we were comfortable with and just let it do its thing. The one other thing I think that I will say is I you know, we did have a smart thermostat before we elected to go with a heat pump. And as a result of going with the heat pump, I actually had to use a proprietary Fujitsu thermostat because I had a Fujitsu system. So I lost maybe a little bit of the flexibility that I had with the previous smart thermostat where I could just talk to Alexa or Google and have it adjust the temperature. That way I don't have that flexibility anymore, but because we've really sort of set the temperature and we just forget it and we leave the setpoint pretty much the same all the time, 24/7 I haven't necessarily missed having that technology. And it's not to say that with all heat pumps, you're going to have to use a proprietary thermostat, many of them are compatible with the smart thermostats that are out there that just happened to be the case with the system that I elected to go with.    Trevor Freeman  13:43 Okay, so speaking of temperature, you know, you and I both live in Ottawa, it gets pretty cold. How did it run through the past two winters that you've had it?    Shawn Carr  13:53 Yeah. So this winter, which I think was considered to be, you know, a milder winter on record here in the City of Ottawa, where we live, I'm very happy to report that my backup heat actually never came on. So I was able to just rely on the heat pump and the heat pump only as our only source of heating for our home this past winter. And so it did have a look, and I think we never did get below minus 20 Celsius here in Ottawa this winter, though, I think the coldest day was around, minus 19. But even at those low temperatures, I did not require my backup heat to supplement the heat for our home. I did go back and look at the previous winter, which I know was much colder and I fortunately put some controls on the heat pump that sort of tells me when's the heat pump running, when's the backup heat running, how much electricity is it using and so on. So I did go back and look at all that data and the prior winter. The backup heat only came on five days throughout the entire winter and those were days where the temperature overnight dropped somewhere between minus 17 Celsius and minus 33 Celsius. So those are really cold nights. And looking back, I think, on those days, the heat pump required the backup heat to kick in, and it would probably run for a couple of days, a couple of hours, sorry, on each of those five days. So you know, when the backup heat is running, my energy costs are obviously higher on those days. But I'm very, you know, pleased to report that over two winters, the cold climate heat pump overall has really done the job. And I haven't really had to rely on the backup heat that much.   Trevor Freeman  15:36 What about the noise levels of the unit? Is it a noisy unit to run? Or what does it sound like?    Shawn Carr  15:42 No, I mean, if you're used to having an air conditioner, I would say that the noise levels have been comparable to what they were with my previous air conditioning system. So I don't think you will notice the difference.    Trevor Freeman  15:54 Great. So if you could kind of sum it up, you know, what's the biggest benefit to putting in the heat pump?    Shawn Carr  16:00 What have you noticed? Well, for me, I think I'd say the biggest benefit is high efficiency, low emissions heating. So reducing emissions was my main driver for moving forward with this project. So the environmental benefits are, you know, really what motivated me to move to a heat pump in the first place. And what I'll say is I've also seen some energy savings as well. So it really has been a win-win project for me and I and I imagine that that will be the same for others who are, you know, on the fence as to whether this is the right technology for them or not.   Trevor Freeman  16:36 Yeah, so you talked about the upfront costs of the heat pump, but something that does, you know, concern some people or that people have questions about is, what is this going to cost me to run? So tell us about what your utility costs have been since switching from natural gas heating over to your heat pump?    Shawn Carr  16:56 Yeah, sure. So I'm a bit of a data nerd. So I've been obviously, you know, tracking all my monthly electricity use and gas use and have been keeping track of our overall energy costs. And so I did go back and looked at our energy costs for the two years prior to the heat pump install, and then looked at our energy costs for the 15 months after I put in the heat pump, which did include two winters, as you mentioned earlier, so my total electricity consumption increased by 62%, over that 15 month period, on average after installing the heat pump, but my gas consumption actually decreased by 65%. And my total energy costs actually dropped by 7%. So I've actually seen cost savings since proceeding with the project. And the other thing I'll just share with your listeners, is I elected to maintain my gas connection. And if I had not done that, the savings would have been obviously even greater.   Trevor Freeman  18:03 Yeah, that's great to hear. Any big lessons learned from going through this process and from your first year, first two years rather, of living with it?    Shawn Carr  18:12 Well, I think in our situation in my project, because I elected to go with electric resistance heating is my backup source, I'd say the one lesson learned is just make sure you understand the control strategy for the backup heat, make sure that your contractor explains to you how they've set that up and how that is, is intended to work. And the reason I say that is like I had picked up on the fact a few months after the project was done that there was backup heat that didn't seem to be operating quite right. And it turns out, I had the contractor come back and do a bit more commissioning. And we ended up putting a temperature sensor in the wrong location in the ductwork. And that had, that had caused some trouble, but it got, you got to identify quickly, it got resolved quickly. And I haven't had any issues ever since the contractor I worked with was very responsive, and they've been really great to work with. So that always helps.    Trevor Freeman  19:07 Great. So I mean, we've heard that this is generally a good experience for you. You're happy with where you're at now you're happy with your comfort and your costs. But we know that there isn't mass adoption of heat pumps yet, and we need to move faster if we're going to meet our climate targets. So what do you think is preventing that mass adoption today of heat pump technology?    Shawn Carr  19:30 Yeah, so I think there's a few things to consider. First thing I would probably say is just low familiarity in general, about heat pumps amongst both customers and contractors, but I think that's starting to get better. I think, you know, Heat pumps are getting a lot of attention right now and in the media and so on. And so I think that's certainly going to help create more awareness. But I think in general, you know, homeowners don't necessarily think about, you know, HVAC technology in general, I mean, we tend to be more aware of when a new car model comes out into the market. But that's not necessarily the same when we're talking about technologies like heat pumps. So that's the first thing I'd say just low familiarity still, in general, the other thing I'd say is just HVAC is not necessarily top of mind for most people, furnaces and air conditioners typically last 15 years. And you don't want to wait until a system failure to explore other options because the right option might not be there for you in an emergency replacement situation. So because we don't have to worry about our Hvac equipment very often, you know, infrequent purchasing and just very little time to make prudent HVAC purchasing decisions are barriers, because you might not be able to find the heat pump that you want, or the heat pump that's right for your home in stock if you don't plan ahead for that project. So that's the second thing. And then the third thing I'd still say is, you know, is cost and although basic single stage Heat pumps are becoming more comparable in costs to air conditioners, for example, cold climate, heat pumps still carry a bigger cost premium. And so without an incentive to offset that increase in costs, there's still going to be the risk of sticker shock for many people.    Trevor Freeman  21:20 Yeah. For those challenges for those things that are standing in the way of more Canadians and more people installing heat pumps, what do you think needs to happen? And either with technology or industry knowledge? Are there policy solutions that can be put in place in order to help more people overcome those challenges?   Shawn Carr  21:43 Yeah, I mean, I have a couple of thoughts on that, I guess, you know, for one, you know, what, what if every new air conditioner were a heat pump instead? I think that's something I think we should all think about. Canadians still install 10 times more air conditioners than heat pumps each year. So if we were able to transform the market, that way, we would really move the needle in terms of impact on energy bills and on overall emissions. So it would also stimulate the supply chain, right? If there was a market transformation strategy like that. So I think a national mandate would be great to see. And, actually, the building, decarbonisation Alliance has done some really great work in this area and recently published a paper called The cool way to heat pumps. And what that paper does is it analyzes the opportunity of installing heat pumps, instead of central air conditioners in Canada. So it's a really good read, I recommend it. But it really does talk about the market transformation strategy that could occur if every air conditioner was replaced with a heat pump instead. And then the other thing I just say is, and I think there's been a proven track record of this starting to work, especially over the last few years is more incentives for customers up front to put in a heat pump incentives for distributors and centers for manufacturers midstream, that could also shift the supply chain towards heat pumps as the recommended system of choice, I think would be, you know, a huge step in the right direction and certainly more access to financing to help those who want to make the right choice. I think those are all levers that will encourage adoption to accelerate. I mentioned earlier that Canada green homes grant is no longer accepting new applicants because of high demand and fully committed funding. But what that tells me is the program obviously worked and was a catalyst for more heat pumps to be installed in Canada. And that's part of driving the awareness and education for this technology, which is really I see it as a no regrets type technology to ramp up even faster.    Trevor Freeman  23:55 Yeah, I think that makes a lot of sense, Shawn. And I think that's part of what we're trying to do here on the show, as you know, and have these conversations of what are those key strategies, technology solutions that are out there that are going to help us address climate change? And what are the policy levers that are going to help make those solutions easier to implement, both at the large scale and for individual homeowners and residents? So there's some great thoughts there. So I'm curious, Shawn, you've got your heat pump installed. Now what's next on your decarbonisation journey?   Shawn Carr  24:32 Yeah, so the next thing I think the next thing for me will definitely be addressing space heating so it's my gas water heater that I want to replace next with a hybrid heat pump water heater. And the reason I'm thinking about that now is that my water heater is currently nine years old. You know, water heaters typically lasted 10 to 12 years. So again, much like I did with the heat pump, I don't want to wait until the water heater fails to be able to decide, you know, to be put on the spot and sort of be forced to make a decision quickly. So I've already gone out and done a bunch of research on hot water heat pumps and received a few quotes. And so really now it's just a matter of when to make the decision to move forward with the project. But that will, that will be next. And then I'm very excited to get an EV. And that will be something that I spent a lot of time researching about, but an EV will certainly be next on my list. And then after both of those two things I've been giving some thought about increasing the amount of generation that I have on my own home, I do have six kilowatts of solar on my roof, but I do have room to add more. And so thinking about maybe adding some more solar and eventually combining it with some storage that'll be probably a little bit further away. I don't know if I can convince my wife to do all of these things right now. But for me, it'll be the water heater next, then EV. And then potentially some solar storage. And I'm a bit of a technology nerd. So given the all the smart home technology that's been evolving and emerging in the market to kind of manage all of these new electrification technologies and so on, I'm always sort of looking at kind of what what's the next piece of tech that might help me track my energy better understand my energy better my carbon footprint and so on. And so yeah, always playing around with different tools in that regard, too. So that's what's next for me.   Trevor Freeman  26:35 Perfect. Yeah, that's great to hear. And some great ideas out there. I'm curious kind of to wrap us up here today, for someone who's just starting out. So for our listeners are out there kind of thinking of electrifying their own lives. Where does someone start? Where do you think someone should really kind of take that first step?   Shawn Carr  26:54 Yeah, that's a great question. I think. So if you want to start down the journey, first of all, I What I'd say is it does really depend if you're motivated by emissions reductions, or energy cost savings. But regardless of what your motivations are, I think, you know, the process that I would probably recommend for most is the default approach is likely going to be when it dies, electrify. I think that just thinking pragmatically is, you know, equipment lasts a long time. And you've, you really have one opportunity to make the right decision. And so, you know, for anyone out there has an appliance that's dying, or their car is end of life, or their heating system is getting older, I think, you know, I would, you know, encourage everyone to think about when it dies, electrify all that to be said, I do recommend that it's really important to have a plan because it will allow you to do some advanced preparation so that you're ready for that first or next electrification project. And I think you know, that plan can come from having a home energy audit done, for example, but it also your plan should take into consideration your current electrical service size, because you can save a lot of money on your electrification journey, if you can avoid having to do a service upgrade. So if you have a 100 amp service, for example, which is the most common here in Ontario, there's still a lot you can do. From an electric electrification standpoint, with that service size, let's assume you now have a plan, you've determined you have some surface capacity on your panel, you're motivated to reduce emissions, I would probably tackle things in this order. First of all, because we live in a cold climate, I would start with some air sealing and maybe insulation upgrades. And the reason for that is these types of efficiency upgrades can enable other electrification measures to be sized appropriately. So for example, right sizing your heat pump as an example. You want to address your air sealing first because that could save you money on the upfront cost of putting in that heat pump. So now your home is reasonably efficient. You're trying to do decide what to do next, depending on whether you're following that when it dies electrify approach or not the order in terms of emissions impact would probably be for just most residential homeowners are, one an EV if you already have a car number two would definitely a be a heat pump and you know for Canadians depending on where you live in the country, probably a cold climate heat pump and then number three would be the the heat pump water heater I think those are the for me, what are the big three? And the emphasis that I'm placing on heat pump technologies both for space heating and in water heating is because you know, those two things account for about 60 to 80% of emissions due to our cold climate and the prevalent use of natural gas for heating purposes. So cold climate heat pump technology is really incredible. It's a game changer for emissions reductions. And as I mentioned earlier, it is a no regrets action that you can take home. And for most people, you're going to see bill savings as a result of that technology investment as well. Aside from that, if any of your large load appliances fail, or if you're considering a level two EV charger, for example, I would consider power efficient appliances that use less load on your panel, because this is going to reduce your electricity demand and leave more capacity for other electrification initiatives. It's also going to leave more room on the grid for your neighbors to electrify so when I mentioned earlier, although a heat pump water heater is next for me, one of the things I forgot to mention is in planning and getting quotes for that heat pump. I also worked with an electrician to do a load calculation and actually looked at my electricity load over the last two years because I wanted to understand in advance what electrification projects can I move forward with right and I confirmed through doing that load analysis that I do have the room in my panel to do both the heat pump water heater and eventually the level two EV charger, but I'm going to have to go with a smaller level two EV charger. So a 32 amp charger as opposed to a 40 amp charger just based on my low profile so far. But this comes back to it's really important to have an electrification plan and try to work with the service within the service capacity you have because ultimately, that can obviously save you save you more money up front. And the last thing I'd say is if you want the full electrification meal deal, we can talk about solar storage, smart panels and home automation. But that's probably best left for another podcast, Trevor.   Trevor Freeman  32:04  Yeah, absolutely. And just for our listeners, there will be lots more of this to come. I think there's a lot of conversations we can have around everything from heat pump technology, to some of the smart technology coming out there, electrifying our homes and electrifying our lives is going to be a really big part of the future for a lot of us and trying to figure out that order. So it's great to hear some of your thoughts, Shawn, it's great to hear some of the journey that you've been on. And I really can't stress enough the importance, as you said, of starting to think about this, each of us in our own lives and trying to put that plan together so that when that furnace dies, or that you know, your your gas stove dies, and you need to replace it, you already know what you plan on doing. And maybe you've even got quotes or you've talked to that contractor and you have a plan and you're not left investing in a technology that's going to lock you into some emissions for the next, you know, 10 15 20 years. So great to hear your thoughts on that, and thanks a lot, Sean, for sharing your experience.    Shawn Carr  33:07 You're welcome.    Trevor Freeman  33:08 So, yeah, great. That kind of brings us to the end here. And as you know, from having been on the podcast before, we always wrap up with a series of questions here. And just a warning, since the last time you were on, I've actually kind of changed them up a little bit. So as long as you're ready, we'll dive right into those questions.    Shawn Carr  33:27 Yeah, sounds good, Trevor. Let's do it.    Trevor Freeman  33:29 Okay, so let's start by finding out what is a book that you've read that you think everyone should read?    Shawn Carr  33:36 Well, I'm not sure everyone should read it. But if you want to learn more about what we discussed today, and get really inspired by a realistic and feasible blueprint for fighting climate change, I am currently reading a book called electrify and optimist playbook for our clean energy future. And it's written by Saul Griffith who I just have a ton of respect for. I couldn't listen to Saul talk all day long. But it's a really good read.   Trevor Freeman  34:07 Great. Yeah, that is a fantastic book. So same question, but what about a movie or a show that you think everyone should watch?    Shawn Carr  34:15 Hmm, well, it's the NA, it's the NHL playoffs right now. So I'm not watching movies or TV shows. But the show that always left me wanting more was Game of Thrones. I love Game of Thrones.    Trevor Freeman  34:27 It's true. I mean, I wish we could get more that feels like an edge that won't be scratched. But hey, you never know. So if someone offered you a free round trip anywhere in the world right now, where would you go?   Shawn Carr  34:41 Well, I know both my wife and I would be on the same page here and it would definitely be Africa. And I know you live there. So when we're ready to plan our trip, I'll be reaching out to you.    Trevor Freeman  34:53 Yeah, that's right. For our listeners, I did spend some time living in a couple of different parts of Africa. So happy to To share thoughts with you. Who is someone that you admire?   Shawn Carr  35:04 I'd say definitely that would be my parents. They are kind, compassionate, supportive, fun, and great people. And those are all just qualities that I admire and people in general. So I gotta say, my parents.   Trevor Freeman  35:24 And finally, Shawn, what is something about the energy sector or its future that you're really excited about?    Shawn Carr  35:30 Yeah, for me, it's definitely the energy, just the energy transition in general, because it's in my mind the pathway to a cleaner and more sustainable future for future generations. And so I think for me that that would be that's what really gets me up in the morning and gets me excited to come to work at hydro Ottawa every day. I also love all the innovation and technology advancements that the energy transition is driving as well. So yeah, those are the things that excite me about the energy sector right now.   Trevor Freeman  36:02 Yeah, I mean, knowing you well, and I'm the same way I know that you like all the sort of new toys and new bells and whistles and functionality that we're seeing come out. And I think we're both pretty excited about that. Shawn, it's been great chatting with you today. I really appreciate you coming on the podcast, sharing your journey, sharing your experience and some of your insight into what residential homeowners might have in store for them as they tried to electrify their lives as well. So thanks very much.   Shawn Carr  36:30 No, thanks for having me. And I look forward to our next podcast.   Trevor Freeman  36:35 Absolutely. Yeah, there's no end of things that we can chat about. So we'll for sure have you on again.    Shawn Carr  36:40 Thanks, Trevor.    Trevor Freeman  36:42 Thanks a lot, Shawn. Thanks for tuning in to another episode of The think energy podcast. Don't forget to subscribe wherever you listen to podcasts, and it would be great if you can leave us a review and really helps us spread the word. As always, we would love to hear from you. Whether it's feedback, comments, or an idea for a show or guests. You can always reach us at think energy at hydro ottawa.com  

If electrification is the future of energy, the grid must become more efficient and more reliable. All across Canada, from province to province to right here at home in Ottawa. Jenna Gillis, Manager of Distribution System Integration at Hydro Ottawa, joins thinkenergy to discuss the process. Listen to episode 136, as she shares how Ottawa’s electricity grid is being updated with an Advanced Distribution Management System (ADMS) and what this means for you, your family, and residents throughout the region. Related links EV Everywhere Pilot Project: https://hydroottawa.com/en/save-energy/save-energy-homes/ev-everywhere  Trevor Freeman on LinkedIn: https://www.linkedin.com/in/trevor-freeman-p-eng-cem-leed-ap-8b612114/ Hydro Ottawa: https://hydroottawa.com/en   To subscribe using Apple Podcasts:  https://podcasts.apple.com/us/podcast/thinkenergy/id1465129405 To subscribe using Spotify: https://open.spotify.com/show/7wFz7rdR8Gq3f2WOafjxpl To subscribe on Libsyn: http://thinkenergy.libsyn.com/ --- Subscribe so you don't miss a video: https://www.youtube.com/user/hydroottawalimited Follow along on Instagram: https://www.instagram.com/hydroottawa Stay in the know on Facebook: https://www.facebook.com/HydroOttawa Keep up with the posts on X: https://twitter.com/thinkenergypod Transcript:  Transcript Ep 136 Fri, Apr 26, 2024 9:47AM • 55:30 SUMMARY KEYWORDS talked, grid modernization, grid, information, customers, devices, data, change, system, energy, asset, technology, call, great, operators, Ontario, working, dynamic, sense, distribution SPEAKERS Trevor Freeman, Jenna Gillis   Trevor Freeman  00:07 Hi, welcome to think energy, a podcast that dives into the fast-changing world of energy through conversations with industry leaders, innovators and people on the frontlines of the energy transition. Join me Trevor Freeman, as I explore the traditional, unconventional and even up and coming facets of the energy industry. If you've got thoughts, feedback or ideas for topics that we should cover, we'd love to hear from you. Please reach out to us, I think energy at hydro ottawa.com. Hi, everyone, welcome back. I'm pretty excited about today's topic, because we're going to be tackling something a little bit technical. And that's always fun. And today is going to be the first of what might end up being a few different episodes looking at this term called grid modernization. So today, we're going to do just a high-level overview. And then over the next few months, there'll be a couple of different episodes that will dive deeper into some of the specific aspects of grid modernization. So that term grid modernization can be a little bit daunting, but that's okay. Our goal here is to pull apart these topics to better understand what they are and how they impact all of us, you know, from those of us working in the energy sector, all the way to the end users of our product, if you will, our electricity customers. So, let's start by a bit of a primer. And I think it'll be helpful to start by talking about what the grid is. So, the electrical power grid has been called the world's largest machine, and the greatest engineering achievement of the 20th century. And for good reason, thinking of it as a machine is a great metaphor, because just like a car, or a sewing machine or a snow blower, there are a lot of parts. And if any one of those parts breaks or isn't working as it's supposed to be, that will impact the overall function of the machine. And the same is true for the grid. And the parts we're talking about here are the holes, the conductors or wires, the transformers, the switches, as well as the many different sensors and meters and communication devices that help the humans in the mix, monitor and control things. The difference though, is that you know, even for a complex machine, like a car, there are hundreds or maybe even a couple 1000 parts. But the electricity grid, even if we just look at let's say hydro Ottawa as territory, there are hundreds of 1000s of parts. And if we scale that up to Ontario's grid, we're talking about millions and millions of individual parts all working together, so that when you turn your lights on at home, electricity that was generated hundreds or 1000s of kilometers away, flows into your device and makes it work. That's pretty impressive. And if any one of those millions of parts breaks, there's an impact somewhere on the grid. If multiple things break, or if there's something really critical that isn't working. That's a major problem. And we've seen these major problems. We've seen large scale outages. And you know, we tend to focus on Ontario's grid on this show, because that's what we call home. But our grid is connected to our neighboring grids, who are connected to their neighbors to form really an interconnected North American grid across Canada and the United States. It really is a modern engineering marvel. And, you know, we didn't just get here by chance. This was kind of designed, you know, back at the early days of the 20th century in the early 1900s. Electrical pioneers met for the first time in what is now Kitchener, Ontario to discuss what it would look like to wire Ontario's customers together to form a provincial electricity grid. Our predecessor company, the Ottawa hydroelectric commission, connected to that provincial grid in 1916. So, what we know as the Ottawa grid and our service territory is over 100 years old today. Before that, across Ontario, reliable and continuous power in the region was kind of uncommon, and really dependent on whether someone in the area like a major business or a wealthy individual had invested in a localized electricity grid for their own needs. An interconnected provincial grid was designed and implemented with a goal of making electricity available to all Ontarians regardless of where they lived. And that kind of evolution of the grid in Ontario is similar to how it worked in other parts of North America and indeed the world. That's kind of how grids came about in the last century. Ontario's electricity grid, however, like all grids around the world, was really designed as a one-way street. So, the idea was to generate and then transmit, and then deliver that electricity to customers in that order. Back then, those pioneers really couldn't have imagined an electricity grid that would need to support two-way interactive things like small scale distributed renewable energy, you know, solar panels on roofs or electric vehicles, or energy storage, and a whole host of other things that, you know, want to do more than just draw power from the grid. As we've talked about the ongoing energy transition, and electrification, which is being driven by the pressures of climate change, is really driving a societal shift to bring the electricity system into the 21st century, and to make sure it's powered with clean, renewable electricity. So, our grid is starting to undergo this major transformation. And we won't be able to do that effectively or affordably by just using the same strategies and technologies and the same pace that we've been doing it at over the last 100 plus years. We need to take it to the next level; we need to rethink what we're doing to upgrade the grid and how we're doing it. And that's really what grid modernization is, it's not saying we don't have a modern grid, it's realizing that the grid of 10 years from now needs to be different in a much bigger way than it's different from how it was 10 years ago, that pace of change needs to happen quicker. And we need to bring on new functionality. It's not just you know, incremental change anymore. To help us make some sense of this. I'm really happy to have Jenna Gillis to chat with today. Jenna is the manager of distribution system integration at hydro Ottawa and is leading this major project that we're calling at a high-level grid modernization, or more specifically, our advanced distribution management system, or ADMS. Jenna has been with hydro Ottawa for 16 years and has held a number of different roles on the operations and systems side of our business and really knows how our grid operates, how it's been operating, how the humans in the mix control things. And what's necessary to get us to that next stage that we've been talking about. Jenna, welcome to the show.   Jenna Gillis  07:04 Great. Thanks, Trevor. excited to talk to about this today.   Trevor Freeman  07:07 Yeah, I'm excited to. So, let's start at kind of a high level here and help our listeners understand how we currently operate our grid today. So, paint the picture for those of us who don't kind of get to see what happens behind the scenes. How do we control things today?   Jenna Gillis  07:23 Yeah, for sure. So, what people might not realize that we actually have people sitting in a control room centralized control room that looks at our system 24/7 365. So, we've got people monitoring the system all the time. And they look at the grid state, and they help direct field activities. They look at triaging outages as they become aware of them. And right now, we've got visibility to our control room to all of our substations, so all of our, you know, high level devices, but only down to about 8% of the feeders and not actually all the way out to our customer level. So, what does that mean? That means that we still rely on customers calling us or reporting online when they experience an outage. And all of that information does make its way back into our control room operators. And it goes into a system we call the outage management system, which helps us track and identify where we might be seeing issues out on the grid. So, the operators then use that information to help make decisions in terms of controlling the grid where they need to open up closed devices where they need to send field crews to restore power. So, on top of that, most of these activities are done by field crews. So, the system operators are in direct contact with our crews out in the field and providing direction on where to go, what devices to you know, have them physically open or close in the field. And we've got about 10% of our system right now that has remote capabilities. So that means that the operators can choose to open or close those devices, basically at a click of a button back in the office sitting at a computer. So, most of what we do today really is human based and does take an expert control operator to be monitoring the systems and making the decisions.   Trevor Freeman  09:08 Yeah, so we've got this like really complex system. It's, you know, state of the art system, if you will, that requires, like you say experts to keep track of what's happening to identify problems and make decisions based on the information they're getting. I just want to pick apart a few things you said there. So, when we're talking about our substations, just for our listeners, those are, you know, spots in our grid where we take higher voltage and step it down via transformers to a lower voltage, and then send that out on wires. That's what we call our feeders to our end customers. We know what's happening at that substation level, we can see whether the power is flowing or not whether switches are open or not. But once it gets past that we lose some of that visibility. That's kind of what I'm hearing from you   Jenna Gillis  09:57 Yeah, exactly. And so that's why I'm saying like we still rely on those notifications from our customers to let us know where they're seeing the problems. And, you know, it comes into a system that, that we can look at in conjunction with that visibility that we have on the substations to help us understand what's going on.   Trevor Freeman  10:12 Right. So obviously, it was such a, you know, an ordered and complex system, we're constantly in proving and renewing and upgrading. That's not new. That's not something that we're just starting. But as I've kind of hinted at in the opening there, we do need to change how we do things. So, before we look into where we're going, how do we renew and upgrade today, what's our current process.   Jenna Gillis  10:36 So, we do have a robust asset management framework. So that's basically a program that tells us and we look at all of our asset information. And that's whether that's poles, wires, transformers, switches, breakers, basically anything we have out on the distribution system, and we look at and prioritize where we need to invest and where we need to renew, replace, install, upgrade, all of that kind of stuff. So basically, as we do that, right now, we go through, and we'll incorporate new technologies, like these remote-control switches, like these sensors to bring information back into the control room to help us continue to evolve, meet our customer or system needs. So, this, this process has worked really well in the past in terms of keeping pace with technology and the requirements of the grid and our customers. But right now, we're seeing that it's we're falling behind, it's too slow to parallel installation of these new technological devices, with these asset renewals or installation. So, I mean, if you think about it, you know, a pull out with wires on it can last over 50 years, we can't wait until we're replacing those 50 years from now to go in and add these new technological advancements. So, what that means is now we're looking at a hybrid approach. So of course, we're going to continue to parallel activities where it makes sense with these asset renewals and upgrades and replacements. But we also need to strategically start placing these devices in areas that we're going to gain benefit from, and I'm talking about benefit from a control room operator perspective, benefit from a safety or field crew perspective, but also where we can provide value to our customers in terms of, you know, expediting restoration efforts, or, you know, providing more flexibility into the system to allow more customer connections, whether that be, you know, new residential developments, or whether that's, you know, the next solar panel or battery or something like that.   Trevor Freeman  12:25 Yeah, waiting for anybody who's familiar with kind of technological adoption curves and the pace of technological change, you talk about 50 years is the life of some of this equipment, the difference between technology and let's say, 1930, and 1980, wasn't a huge jump when it comes to poles and wires and transformers. But today, the difference of 50 years is night and day that we're not talking at all about the same technology. So, we can't wait for that whole cycle to go through before we're getting some of the tech in today that we need today in order to upgrade the system. So that's helpful to understand what that looks like. So, let's look forward then. And when we talk about where we want to go with grid modernization, how we want to change that, talk us through what we're trying to accomplish.   Jenna Gillis  13:14 Yeah, so I think I'm going to paint a little bit of a picture here in terms of how I think about grid modernization, because that's really helped me contextualize the way that we need to do things differently. So, I think of grid modernization, that program in entirety as like a stacked or a layer pyramid. At the bottom, you have field devices. So, you have equipment that's remotely controlled, or providing data in the field. So, you know, we're talking about sensors, or meters or switches, things like that. That's your foundation. On top of that, you then need a way to get that information back-to-back to systems back to people. So, then you need a communication infrastructure. So, you need to be able to take that data and funnel it where it needs to go, which is the third layer data management, you need to store, organize, create access to that field data. And then finally, the fourth triangle right at the very top is your applications and analytics later. So now you've got the data coming from the field, you're bringing it back, and you're managing it. So now what are you going to do with that information. So, these are the applications and analytics. So really the tools that digest that data and ultimately help make decisions. So that is what I envisioned kind of as the grid modernization pyramid. And you need each one of those layers to unlock the value from the layer below it. So, you can't really have one without the other all the way up to the top. So, what we need to start doing is thinking about these layers in a programmatic fashion. What we've done historically is looked at the requirements on a project by project or program by program basis. So basically, you would unlock each one of those layers for that specific project or program requirements. What we need to start doing now is that grid modernization is going to be the foundation for everything we do. So basically, every project, every program is going to require some level of information, data management, analytics, communication. So, the way we're looking at that is this is now becoming a foundation to everything we do. So, we need to be programmatic, roll this out so that regardless of what we're doing in the future, we have this foundation to rely on. And we're not building it piece by piece as we work through, you know, project life cycles. So really, what's different when I talk about grid modernization assets, and I'm talking about meters, or sensors or remote-control devices, is the integrated nature. So, we talked about that pyramid, you can't use these devices without any one of those layers, whereas you think of a traditional asset like a pole, you can, you know, load it up at a truck, and somebody can go and put it in the ground. So, it's really the true convergence. Now we're seeing what we, you know, our information technology, our IT systems, our operational technology, or OT systems, and then operations and asset management. So, we really need to be looking at these things together, as one, making sure we're all aligned to unlock each one of these layers.   Trevor Freeman  16:15 Yeah, it really highlights the, I guess, cascading impacts of projects and decisions and bringing on new technology across the entire distribution, business and how we do things and how we serve our customers. One is impacting the other in ways that hasn't really, truly been the case before. So that's a great way of painting it. Thanks, Jenna. Let's talk about kind of the why behind this, what are the benefits that we're going to see by taking this approach by taking this sort of accelerated upgraded process that we're doing? What are we going to gain from this?   Jenna Gillis  16:54 So, our overall grid modernization strategy is guided by five key objectives. So, I'll go through each one of those and give you kind of a high-level blurb on what it is that we're trying to achieve with grid modernization. So, the first one is enhancing reliability. So, the more monitoring devices you have in the field to understand the state of the grid, the more remote capabilities you have in order to operate. And you know, isolate and restore, the better reliability has the ultimate goal is moving towards an automated process, where you have all of the foundation of the equipment, the communication channels and the audit, the analytics to make decisions, you can get outages restored much more quickly. The next one is what we call flexibility. So adaptive grid flexibility. So, we want to make sure that the grid is dynamic to all of these changing energy demands that we're seeing come online, so things like heat pumps, or electric vehicles, or solar generation or battery, we want to provide more options for the connections and be able to have the grid respond dynamically to these changing conditions. Next one we have is fortified resilience and robust security. So, resilience is really about the ability to do to withstand disruptions. And I'm talking about that from, you know, a physical asset perspective, but maybe also a technology perspective, as well, we want to make sure that we have a good diversity, to be able to recover from disruptions. So, we know there will always be disruptions, as we've seen, kind of with the weather and the little last little while. And then as we get more and more connected, we need to make sure we're safeguarding assets from cyber threats, core to everything we do, we want to make sure that we're thinking about the customer. And so, we're looking towards strengthening customer engagement and empowerment. So, we've talked about, you know, getting more data back from the field and being able to unlock new ways of doing things, new tools, and providing some of this information back to the customers to help them be better informed about their energy uses, and their, low profile and what they want to do with their equipment. And then finally, sustainable decarbonization of renewable energy integration. So, we really want to look at reducing our carbon footprint by optimizing our planning and operations processes. So, we talked about it a little bit about automation, you know, that will reduce our need to roll trucks for crews to physically go out in the field and operate devices. And basically, everything above we talked about was, you know, being able to incorporate renewable energy sources. We want to make sure that we have the ability to bring these resources online and leverage them.   Trevor Freeman  19:34 Yeah, I mean, it really kind of, again, not to kind of reiterate the same things we're talking about, but it it's an all-encompassing type of project like everything we're trying to do everything we talk about on this show, when it comes to the energy transition, whether that's having a more robust, sustainable, smart grid on the utility side of things, to enabling the kinds of things our customers want to do in terms of adding in more DER's, more self-generation and storage, this project is kind of the foundation work. And that's going to support all of those efforts. And we're really only going to get so far without doing this kind of work, which stresses the importance of it.   Jenna Gillis  20:19 Yeah, it really does unlock so much more by having this level of information and visibility into our system that we want to achieve.   Trevor Freeman  20:27 Yeah, that's great. Okay, so let's kind of dive in here you have this overall strategy that you and your team have outlined, which you're calling our grid modernization roadmap. Walk us through the main components of this and kind of the timelines that you've laid out? Is this a six months project? I say that kind of laughing, knowing is not a six-month project? How long is this going to take? And what are the major components of this.   Jenna Gillis  20:53 So hopefully, I've done some justification in terms of, you know, mapping out how complex this actually is to deploy. And so, our grid modernization roadmap is set out, basically a set of initiatives over the next 10 plus years. So, we've kind of, you know, got a good handle on the objectives we want to unlock over the next 10 years. And so, we've laid out, what do we need to do to unlock those, and what's the timing of that. So, we also need to understand that this is going to be dynamic and constantly evolving with, you know, technology or market drivers. So you know, this roadmap is only as good as it is today until you know, something changes tomorrow. And we recognize that this is going to have to be dynamic and evolving. So due to the complexity of it, we decided to basically bucket the program into six different component layers so that we can really get a sense of how one feeds into the next as I kind of talked a little bit about the pyramid before. So, the first one is physical infrastructure. Number two is sensing and measurement. The third is communication. Fourth is data management and analytics. Number five is control and optimization. And then finally, the last number six is business and regulatory. And so all of our initiatives fit underneath one of those six components.   Trevor Freeman  22:12 Okay, so let's dive in and pull them apart that I'd love to kind of talk more about each of those. And just for our listeners, we're going to keep this fairly high level, because we don't have time to get into super detail on all six. But the plan is actually to take future episodes and maybe pull apart some of these in more detail. So if you're super interested in what we're talking about today, don't worry, we'll dive into more detail. So, let's start at the top with physical infrastructure. What does that entail?   Jenna Gillis  22:40 So the physical infrastructure component really targets the challenges and opportunities posed by electric vehicles electrification, climate vulnerability on the grid itself. So, we talked a little bit about the fact that we need to start adapting, or continue to adapt our asset management practices to address these factors. So you know, what does that mean that that's things like I talked about before about increasing the rate that we add new technology or remote switches and sensors and things like that into the system. And I talked before about resiliency and flexibility. And a corporate part of this is, you know, incorporating an increased level of climate risk consideration into our, you know, acid assessments and our plan for renewal or replacement of those devices.   Trevor Freeman  23:28 Yeah, so this part of the strategy is really about, you know, the actual devices in the field that are going to be installed the new technology that we want to get out into the field on our grid. Let's pick apart that last piece a little bit, the climate vulnerability, how are we also trying to, you know, for lack of a better word, harden our grid, or make it a little more resilient to some of the weather events we're seeing?   Jenna Gillis  23:52 Yeah, so I think everybody's probably well aware that it's not about, you know, if we're going to see, you know, another large weather round, it's about, it's about when. We've always incorporated those types of things into our asset planning. But now, the frequency and severity of these things is becoming higher and higher. So, what we started looking at is, you know, reliability has always been a priority. But now we're shifting gears a little bit to resilience. So, I talked about that before. And that's more about withstanding and recovering quickly from the events, like I said, we know they're going to happen. So how are we going to make sure that we can recover as quickly as possible. So, with looking at that, we're looking at things like reviewing our design elements, like strengthening the poles that we install or doing strategic undergrounding and sections of overhead lines that we know have a high exposure, and like subsequent consequence of failure. So, we are building all of these strategies now as well into that asset management in the deployment of what we're putting out into the field.   Trevor Freeman  24:50 Great. And again, just for our listeners, you know, I want to talk more about what we're doing and what can be done on that climate resiliency piece. So there, you know, keep your eyes open for further episode on that down the road. Okay, so the next piece you talked about is sensing and measurement at a high level, talk us through what that what that means and how that contributes to overall grid effectiveness.   Jenna Gillis  25:13 Yeah, so sensing and measurement is more than just installing the physical devices that we kind of talked about in the previous component. And its devices like sensors to detect faults and report back and where there might be disturbances or outages on the system. And it's more than just meters on customer homes, it's about integrating that data back into our grid management systems. So, you know, our ultimate goal is to have real time access to all of the data from our customer meters, you know, that's over 350,000 meters. But to achieve this, we need to have a robust strategy to transfer that information store that information, at the right frequency, meaning in terms of, you know, how often do we get the information from these devices? And how often do we receive that information back in the office for all of the different use cases, and there’s, you know, there's hundreds of use cases for that information. So, this does represent a significant shift in the way that we're using our meters right now. Right now, when I talk about our customer meters, we take a reading from those once every 24 hours, with hourly level of granular data. So, it's basically once every 24 hours, we get 24 points of data. You know, and we're talking about what we want to do with grid modernization, we're looking at, you know, reading those meters, you know, once a minute with more information. So you can see there is a huge shift in the way that we've got kind of the infrastructure set up around those things.   Trevor Freeman  26:43 When you talk about those numbers, so 24 data points every or every day, changing to potentially reading every minute. Remember, we're multiplying that by 350,000. So that's a huge amount of data. And, you know, Jenna and I are working for hydro Ottawa here, one of the sorts of medium size utilities in the province of Ontario, we've got other utilities in the sector that have millions of customers. So, the importance of data and how we handle that, and we'll talk a little bit more about that in a minute is certainly really high on the priority list. You know, some of what you mentioned there sounds a lot like what we call advanced metering infrastructure 2.0 or AMI 2.0. So, for that kind of in the industry that know what that is, that's maybe the next generation of meters, we might be talking about, how does that differ from the existing smart meters that exist all across Ontario? And that doesn't mean they exist everywhere in North America, but at least in Ontario, we've got kind of what we call AMI 1.0. What does AMI 2.0 look like? And how does that change things?   Jenna Gillis  27:50 Yeah, so there's kind of one key critical factor, AMI 1.0 was rolled out with, you know, one main purpose, that's billing. And so, our meters are set and our communication infrastructure is set up to again, report back on a frequency that makes sense for monthly billing. So, like I said, in other words, that's a once a day reading. And so that data is stored and available the next day, so not, not what we would call real time. So, this information is incredibly valuable. And we do use it for planning and supporting operational processes. But it doesn't allow us to respond real time to the conditions on the system, right down to that customer level. So, AMI 2.0, which is basically fate. You know, the next step from that first level of having, you know, meters that we can read remotely from the office is more just about than, like I mentioned before about installing sensors, it's not just changing those meters, we talked about the data requirement. And so, it's also a substantial upgrade to our communication infrastructure to get that higher volume of data back from the field. And what are we going to use that information for? Like, why is it important to have it real time as opposed to you know, the next day, it's because these meters will be able to give us things like a power off notification. So, we talked before about the fact that we do still rely right now on our customers calling in to let us know that they are out of power in the future with AMI 2.0. The intention will be that these meters will report right back into that outage management system. And we will know as soon as that meter sends a signal, say, Oh, I've lost power. The second piece of that is we'd want to know when your power comes back on. So, we're going through we're doing our restoration efforts, we want to make sure that we're picking everybody up. So we'd also be able to get a signal coming back on and say like yep, I just turned back on. So having this visibility right down to the customer level gives us so much more flexibility in terms of how we can respond to the system in real time. The other one it also opens a whole bunch of other future use cases such as you know, we talked about unlocking benefits for our customers as well but real time data but their energy uses and you know, providing additional tools or software to help them look at their consumption and overall save money on their bill. So, I'm then that's a future step. We're not there today, but the work is on the way to achieve that. And that, you know, those are some of our guiding principles around what we're doing for grid modernization. Yeah, really highlights how powerful it can be to know what's happening in real time at every, you know, end use of our entire grid, every customer knowing exactly where the issues are exactly when they get resolved or don't get results. So that's pretty powerful information. So, as we've kind of talked about, there's a natural tie over from having that sensing and metering equipment out in the field, gathering that data, and then getting that data back to our system office where we can use it. And that's where communication comes in. So, tell us about the critical role that our communication technology will play.  So today, hydro has a communication network that we've spent our entire service to territory, and it uses a bunch of different technologies or different channels like cellular networks, radio, fiber phone lines, so we've got a diverse communication network that sees across our service territory. So again, kind of parallel in the way that we've been deploying some of these smart technologies. This strategy is very effective and accommodating the sensing and measurement control devices that we've been doing today. But again, we are talking about an increase in data we're talking about an increase of physical devices means that we need faster higher capacity methods to get that data from the field back into our systems. So again, this is all part of the strategy that we're focused on is making sure that we have this backbone communication infrastructure ready to connect these devices into. We don't have all the answers on that yet. But we know roughly where we need to get to. And again, it's part of this roadmap to make sure that we achieve those objectives.   Trevor Freeman  31:47 So, when we talk about communication and sending data over communication networks, increasingly, we all know, the challenges with cybersecurity. And people may be wondering, how are we going to protect all this data that's now flowing, that's giving real time information about you know, power use on our grid? How does cybersecurity fit in within this plan?   Jenna Gillis  32:08 So, we do have a robust cybersecurity standard that we follow, and a dedicated team who looks after these things for us. So, as we know, as the grid becomes more and more connected, cybersecurity becomes an even more crucial part of this. And it's a critical factor. And we you know, we mentioned it as one of the core objectives of the program is to, you know, maintain our security. So if you think about it in the past, when we went and you know, just installed a device that, you know, somebody could go in and control from a bucket truck, you didn't have to incorporate cybersecurity standards, you didn't have to, you know, have a device, go through the multiple levels of checks and validation that we have to do things today. So, it is another shift in the way that we operate, right is that and again, we need to keep pace on the technology standpoint of things, not just the physical device.   Trevor Freeman  32:58 Totally. Okay. So, there's definitely a bit of a flow here, because we talked about the data in the field, we talked about communication. Now we've got that data coming into hydronic, into our system office, we kind of move into that next piece, you talked about data management and analytics. How does all this data help us transform our grid? What do we do with this data once we get it?   Jenna Gillis  33:22 Yeah, so raw data coming from the field isn't overly valuable, what you need to do is you need to have an established framework for that information to allow the users to access that in real time. And so, when I'm talking users right now, you know I'm talking about it could be a number of different meanings. But today, we're really talking about our hydro Ottawa control room operators, I'm talking about, you know, our planning teams, our operations teams, and our maintenance systems information. So, you need to make sure that you have a framework to access that information in meaningful formats. So, you know, eventually, once we get a sense of what this information is, and we have a robust strategy around it, we could be providing that information to customers for their energy management systems and use cases like we talked about before. So, the other piece is as we collect more and more information on the condition and use of our assets, we can refine and enhance our decision-making planning operations, asset management becomes more and more formed. So, each one of these pieces of data is critical, but you need to make sure that you have a strong framework around it. So, you are gleaning the value from that information.   Trevor Freeman  34:24 Yeah, I mean, you're kind of talking about analytics here. And, you know, analytics is essentially combing through that vast amount of raw data and pulling out insights to make smart evidence-based decisions. I know I'm asking you to kind of look in a crystal ball here, but what kinds of insights are you expecting to get once we have access to all this data?   Jenna Gillis  34:45 Yeah, so really, the expectation is, the more information we have about how the grid operates and performs under a variety of different conditions. We'll be better able to plan and optimize that configuration when I talked before about you know that grid resiliency, so What is the best configuration of our of our network? Where do we have problems downstream that we maybe didn't see before. But now we see. So, we can start setting things up differently. It will help us enhance our ability to appropriately size and prioritize our investments and make better use of the existing assets that we have. So, in light of all these uncertainties we got about electric vehicles electrification and climate risks. The more information we have at our fingertips, the quicker we're going to be able to respond and adjust our strategies to keep up with those market drivers.   Trevor Freeman  35:34 Yeah, you. So, asset utilization is a really fascinating piece. And again, you know, this isn't the episode to dive into that. But just quickly, for our listeners, you know, you may be familiar that utility companies have to design to peak load. So, we need to be able to provide the highest amount of power that people need, whether it's a hot, sunny summer afternoon, and everyone's got their air conditioning on. But while we're not using that peak load, assets are sitting underutilized, we're not using the capacity we need. And the more of that capacity we can use, the better. And by putting in some of this technology. By gaining those insights, if we can do appropriate, switching or better planning to utilize our assets better, everybody wins, our grid is more effective, it's more economical. And I think we're all in better shape. So great to see where we're going with that. The next component you talked about is control and optimization. So, we talked about how we control the grid today and how it's kind of a manual process. We have, you know, really smart folks sitting in our system office who are making important decisions. How does that control evolve with this strategy?   Jenna Gillis  36:48 Yeah, so this layer, this control, and optimization is really about using all of that data to make informed decisions. So one, we're actually undergoing one big transformation, transformative project right now. And you referenced it earlier, it's our advanced distribution management system, or ADMS. So what this is, is it's really a complete modernization of the software tools used by our control room operators. So the individuals sitting at the desk watching the state of the grid 24/7 365. So to give you a sense of what they're using today to see that picture is the operators have to interact with at least five separate systems right now that are not integrated to gain all that full picture. So the intent of this project, and the main driver is to paint one pane of glass for the operators, it's amalgamating those five separate systems into one view, to give them better insights into the status system. So we're going to be calcinating, these five systems, but also then incorporating more of this field data that we've talked about collecting as well. So, some of the things that we kind of lock with the advanced distribution management system that we aren't capable of doing today is working towards implementing a fault location, isolation and service restoration scheme. So, if you're in the industry, that's well known as FLISAR. So what this is   Trevor Freeman  38:06 a fantastic name, by the way.   Jenna Gillis  38:08 Yeah, what this is really about is two way communication to and from these field devices and sensors to get a sense of where we might be seeing issues on the distribution system. So where we have faults, or where we have outages occurring, this system will then it's an analytic platform that takes all the information back and it can propose to the operators switching to restore as many customers as we can and isolate that faulted section with line. This future step of that is once we get comfortable, and we know the system and the analytics are working effectively is to allow the system to do it automatically. So instead of proposing switching to an operator who can make the decision and then perform the switching or roll a field crew, eventually we'd be able to do this automatically. So once the system is configured, and we've got all those remotely operable devices in the field, we would allow the system to make automatic decisions and restore and isolate the faulted sections   Trevor Freeman  39:03 So I mean, you're talking about analyzing data and making decisions automatically. It's kind of sounds like AI a little bit, which, of course, is a pretty, you know, buzzword these days in a lot of different sectors. Does, does AI come into play here in terms of making decisions and controlling things on the grid?   Jenna Gillis  39:22 Yeah, so I mean, we have a number of use cases that we're looking at right now with AI. And obviously, the more data we get, the more opportunities we have to leverage technology and AI. So some of the things we're looking at right now is things like predicting and forecasting demand levels or load levels that are on the distribution grid based on you know, a number of inputs, so like the grid status, what's the weather going to be? What did you know? What was the historical loading and things like that? And when you have multiple factors like that, that feed into, you know, what is your customers load going to be? You need something like AI to be able to digest all of that information and come up with recommendations another one This is just analyzing multiple sensors and control boards to help us predict failures. So the more information we're getting back on the assets, we can use AI to help us explore build models to help us identify exceptions in those large amounts of data. And in order to be able to flag potential failures, and allow us to intervene and course correct before, you know, they potentially cause an outage or something like that.   Trevor Freeman  40:23 Yeah, so that would be and correct me if I'm, if I'm wrong here and interpreting this wrong. That's like, taking a bunch of data points on our existing equipment is running, maybe you know that the temperature that we're seeing, or the loading on that equipment and how that relates to its normal operating load, and be able to say, we think based on the operating conditions, this piece of equipment is likely to fail faster than otherwise it would, is that kind of what you're talking about? Yeah,   Jenna Gillis  40:49 Yeah, exactly. Or even in real time, this piece of equipment is going to overload. And so you need to take intervention and move load around door, something like that as well. Yeah, Yeah, exactly.   Trevor Freeman  40:58 Yeah. And all of that data. I mean, that's all things that we know how to do. But no human can possibly do that in real time with the amount of data coming in. And so that's where some of this advanced technology and AI, artificial intelligence really comes into play to help us pull that out of the massive sea of data that we're going to be getting.  Okay. Okay, so the last component, you mentioned it, you know, on the surface, it might seem like a bit of an outlier business and regulatory, but I think it really ties it all together. And it's, again, one of those foundational pieces. So, you know, that the electricity sector is highly regulated, as our listeners probably know, it's extremely complex to navigate. It has been accused, in the past of, you know, not being very conducive to innovation and change. What are some of the priority areas that you've identified, whether that's, you know, dialogue with our regulator, the Ontario Energy Board, or just, you know, regulations and policies, internal or external to our organization that that you think, need to come into play to make this modernization happen?   Jenna Gillis  42:06 Yeah, the whole objective of kind of the business and regulatory stream through good modernization is about building a holistic approach to build operational structures and processes to be able to address and respond to these dynamic market drivers. So, one of our big priorities right now is to raise awareness of this of this approach. And the fact that we're broadening our investment categories beyond what you know, I'd consider to be those traditional asset condition or reliability or end of life types of drivers to know, include and layer into it these system observability, these control points and this resiliency, which is a shift in terms of you know, how we we've justified or how a regulator has looked at the way that we do business in the past. But we also make sure we need to look internally. So, it's not just about looking externally and making sure that we're aligned with our regulator, but it's about looking at our internal business process to make sure that we're aligned to deliver the value that we've set out for the grid modernization objectives. So, we need to make sure that we have mechanisms to be able to measure our success, and feed that back into continuous improvement I talked about the roadmap is, is needing to be a dynamic, so we need to make sure that we're monitoring our progress towards the delivering of those chapters, and have ability to stop and pivot where we need to when we need to   Trevor Freeman  43:24 this kind of opened the door for new business models or new way of doing things? And are there like specific pilots that we're considering or specific initiatives?   Jenna Gillis  43:35 Yeah, there's, there's a lot going on in the electricity sector right now, one of the big kinds of hot topics right now is that there's indications that local distribution companies may need to in the future operate in a similar capacity to the way the Independent Electricity System Operator behaves. So, the ISO they control and dispatch the bulk systems. So, they look at they do forecasting on you know, the Ontario energy needs, and they throttle on and off generation and those types of things, the thought is, this is going to be needed at the local level. So, they look at you know, hydro, it was service territory level, we may need to look at dispatching generation and doing dynamic load management and things like that. And this is this is a holistic change to the way that we operate right now. And so, we need to be able to future proof ourselves to move down that path if that's where things go and dispatching energies resources. I said it kind of as you know, it's just it's one thing, but it's really, it's we talked about a little bit of a comprehensive analysis system to take in all of those inputs and understand forecasting and where things are going to be including an economic factor and all the different customer types, including, you know, the widespread adoption of electric vehicles or battery storage, so it can get to be quite a complex system.   Trevor Freeman  44:59  Yeah. it kind of sounds here, like you're talking about the distribution system operator model or DSO. And, and again, you know, like I've said a couple of times, I think there's a future conversation or future episode about that. But it's like you say, having the distributors, the local distribution companies, able to make decisions on how energy is used within our grid, and then that feeds up into how I saw was running the kind of broader provincial grid. So, I'll put a pin in that one. And we'll come back to that on a on a future episode.   Jenna Gillis  45:31 And, yeah, and so something that's important for us to understand too, is if we do go down the road of a DSO, we need to know where and what could impact our operations or where we could have those triggers or throttles on the distribution system. So right now, we're undertaking a pilot program as well, looking at EV charging, and we've called it EV everywhere. And I'm sure everybody's well aware that EVs are, you know, could be a huge dynamic load that show up on our system anywhere at any time whenever, whenever somebody wants to plug in their vehicle. And there's also talked about using EV batteries as an energy source to feed back into the system to help grid capacity constraints. While that still might be a long way off, there are still solutions that we want to manage to leverage the Chargers. And we've looked at, you know, instead of having everybody come in and come home from and you know, after work, plug in their EV and start charging at 5pm. And causing, you know, a new peak in our demand, looking to be able to stagger that charging and whether that's staggered at local community level, whether that's needing to stagger at, we talked about a substation level or whether we need to stagger that at a whole hydro Ottawa service, territory capacity. So, EV everywhere is really looking at the use of artificial intelligence to help us make those predictions about where and when and how long EV charging needs are required and being able to manage those devices. So that it reduces the impact on our distribution network. And we talked about increase our asset utilization. And we're hoping to be able to push that beyond just the pilot stage that we're in today.   Trevor Freeman  47:05 Yeah, and really, that's, you know, for, for the end user, for our customers, that's going to help us remove barriers to you getting that EV and being able to charge at home or where you live or where you work. So that we're not having to modify the grid drastically in order to allow that, we want to make that process as easy as possible. And this is testing out a strategy to do that. So, Jenna, that's super fantastic to hear about this roadmap that you have. And I mean, look, the listeners out there who know me know that I'm pretty optimistic, and I'm pretty excited about this stuff. But I think it's important to highlight some of the risks. So, it's a great roadmap, it's a great plan, what could trip us up what could get in the way of us being able to implement the strategy and rolling it out as you envisioned it?   Jenna Gillis  47:56 I think the first one is that this is, this is large, this is transformative. This touches multiple business areas and, and is, is driven by multiple outside influences. So, we need to make sure that we've got holistic change management strategies, we need to look at the pace of change that we're implementing, and not necessarily on the distribution grid, but also on our systems, our process our people. So, we need time to make sure that when we introduce a large change that we have some settle in, we have some time to adjust and correct and, you know, keep that dynamic continuous improvement process, as we move from one, it's going to be moved from one change to the next set at pretty rapid pace over the next few years. And with all that change, we need to have the right people, we need the right people, we need the right skill set. And some of these skills are things that we haven't done before. So, these are new responsibilities, new skill sets to the organization, and I'm going to put a little plug in here is that we're hiring right now. So, take a look at our careers page. And if I've, if I've painted an exciting picture, and you want to be a part of this, take a look. We're hiring some of those skill sets today. And this stuff is going to span multiple years, right? So, I feel like in the past, we kind of had you know, like, oh, well, that's a five year program. And then and then you're done no like this is this is going to be a continuous evolution. And these can span multi years. And I talked about it before, we need to be able to adapt and pivot to meet the requirements of technology and our customers. And we need to expect that and so we need to build the that ability to stay dynamic through these multiyear programs. To make sure that, you know, we maybe we need to change what our grid modernization objectives are halfway through, and that's okay, we can do that.   Trevor Freeman  49:36 Yeah, I think if there's one kind of common theme that comes up in these conversations that I get to have as part of, as part of the show is this is big change that we're talking about here. This is sort of fundamental change within not just one organization within an entire sector and we're all trying to figure out how we do it, we've all got different ideas, and we're working together. And I think your point about, we need the right people to do that we need people that are really passionate about this and really smart, and see the opportunity to create that change and realize, hey, you know, the utility is not a bad spot to do that it's kind of at the epicenter of a lot of what we're doing here when it comes to energy. So great thoughts. So, I mean, that's kind of the end of the grid modernization question. So I don't know if now we get into the easier part of the conversation or the harder part. By we,   Jenna Gillis  50:35 you're talking, you're talking to an engineer. So, when we talk personal, it's harder than the techniques of the technology.   Trevor Freeman  50:42 Awesome. Yeah, I can, I can definitely relate. So we always end our show with the same questions to our guests. And it just kind of helps us learn a little bit more about you. So as long as you're okay with it, we're going to dive right in.   Jenna Gillis  50:56 Yeah, let's do it.   Trevor Freeman  50:58 So what's a book that you've read that you think everybody should read?   Jenna Gillis  51:01 So, I mean, I think I kind of already touched on it. And the fact that these were the more uncomfortable questions for me. One book that I read that I really enjoyed is as quiet the power of introverts in a world that can't stop talking by Susan Cain. She has a TED talk, too. So, if you want to kind of get a short snippet of what she's talking about, but really, it's about dynamics of how our world emphasizes extraversion, and basically everything that we set up and everything we do, and so we need to make sure that we're allowing space for our introverts.   Trevor Freeman  51:31 Great, I like that. What about a movie or a show?   Jenna Gillis  51:35 So, I'm not a big movie person. But I've got a TV show. It's pretty niche. It's called the Curse of Oak Island, I'm sure probably not very many people know what I'm talking about. But I followed the story from the beginning. So, the show started airing a long time ago. It's basically about a 200-year-old treasure hunting mystery in Nova Scotia, touches on archaeology and some potential connections right back to the Knights Templar. So, I've become pretty invested in it. It's one show   Trevor Freeman  52:04 is your next vacation to Halifax to go and check out the Oak Island and find this treasure?   Jenna Gillis  52:09 You know, I think it would be pretty cool maybe once like to go and see what they're doing and like the size and scale of what they're doing, but I wouldn't necessarily dedicate a whole trip to it.   Trevor Freeman  52:21 Good to know well on that note, what if somebody offered you a free round-trip flight anywhere in the world? Where would you go?   Jenna Gillis  52:29 Yeah, so not Nova Scotia. I'd love to be able to be out and see the northern lights. So somewhere like Iceland or Greenland, I think, seeing something totally different than what I'm used to here in here in Ottawa.   Trevor Freeman  52:44  very cool. Who is someone that you admire?   Jenna Gillis  52:47 So I feel like this is going to be really cliche given that Taylor Swift has recently released another album. But Taylor Swift, I think she's incredibly powerful and positive female influence and think she's a great role model. She's got strong big business strategy and authenticity. So, I think she's, she's a great role model for girls to be looking up to.   Trevor Freeman  53:12 Yeah, I'm, I'm currently I'm not ashamed to admit I'm currently going through her eras tour with my kids right now. We're watching it and kind of little bits and pieces here. And while we're watching, and I'm texting my nieces, because they're big. They're big Swifties. So that's a great example. And finally, and you're a great person to, to answer this question being kind of right out in the weeds of the energy change. What is something about the energy sector or its future that you're really excited about?   Jenna Gillis  53:42 It's really about the pace of change. So I, you know, we talked about like, I've been with hydro water for about 16 years now. And I feel like we've always been saying it's coming. It's coming. It's right on the horizon, right. So it's here, we're seeing it, we've always been kind of forecasting and wondering when it was going to hit and it's here. So I love that we need to be innovative. I love that we need to rethink the way that we're doing things. And I'm super excited to start breaking down silos and building these cohesive strategies and working together to problem solve, because it's more important now than ever to, to build that integration with, you know, everybody on the team. So that's what I'm super excited about.   Trevor Freeman  54:18 Yeah, I can definitely relate to that. That's, that's what keeps me coming into work every day to I really like them. Jenna, this has been a really great conversation. Thanks for sharing your insights with us on what hydro Ottawa is doing when it comes to grid modernization and just kind of sharing your experience and your expertise on how we're changing and getting ready for the future. I really appreciate it.   Jenna Gillis  54:39 Well, thanks, Trevor. Hopefully I did. I did some justice to what we're doing. And hopefully I've piqued some interest in diving deeper into some of these very specific initiatives that we've got underway.   Trevor Freeman  54:51 Absolutely. And don't be surprised if I reach back out to you to come and dive deeper on some of those as well. So we'll have you back on another time.   Jenna Gillis  54:58 Perfect. Thanks a lot, Trevor. Appreciate it.   Trevor Freeman  55:01 Thanks. Take care. Thanks for tuning in to another episode of The think energy podcast. Don't forget to subscribe wherever you listen to podcasts and it would be great if you could leave us a review and really helps us spread the word. As always, we would love to hear from you. Whether it's feedback, comments, or an idea for a show or our guests. You can always reach us at think energy at hydroottawa.com  

Ontario's electricity sector is evolving, as the province navigates the transition to cleaner energy amidst rising demand. In thinkenergy episode 135, we explore the grid's structure and key players, highlighting the crucial role of distributors (Local Distribution Companies or LDCs) in facilitating this transition. Guest Teresa Sarkesian, President and CEO of the Electricity Distributors Association (EDA), sheds light on LDCs' frontline efforts and pivotal contributions shaping the energy landscape. Related links   Teresa Sarkesian on LinkedIn: https://www.linkedin.com/in/teresa-sarkesian-53898613/   Electricity Distributors Association: https://www.eda-on.ca/  Green Button information: https://www.oeb.ca/consumer-information-and-protection/green-button  Electrification and energy transition panel report: https://www.ontario.ca/document/ontarios-clean-energy-opportunity-report-electrification-and-energy-transition-panel  Ontario Electricity Support Program: https://ontarioelectricitysupport.ca/  Trevor Freeman on LinkedIn: https://www.linkedin.com/in/trevor-freeman-p-eng-cem-leed-ap-8b612114/ Hydro Ottawa: https://hydroottawa.com/en     To subscribe using Apple Podcasts:  https://podcasts.apple.com/us/podcast/thinkenergy/id1465129405   To subscribe using Spotify: https://open.spotify.com/show/7wFz7rdR8Gq3f2WOafjxpl https://open.spotify.com/show/7wFz7rdR8Gq3f2WOafjxpl To subscribe on Libsyn: http://thinkenergy.libsyn.com/ Subscribe so you don't miss a video: https://www.youtube.com/user/hydroottawalimited   Follow along on Instagram: https://www.instagram.com/hydroottawa   Stay in the know on Facebook: https://www.facebook.com/HydroOttawa   Keep up with the posts on X: https://twitter.com/thinkenergypod     ...   Transcript: Trevor Freeman  0:07  Hi, welcome to think energy, a podcast that dives into the fast-changing world of energy through conversations with industry leaders, innovators and people on the frontlines of the energy transition. Join me Trevor Freeman, as I explore the traditional, unconventional and even up and coming facets of the energy industry. If you've got thoughts, feedback or ideas for topics that we should cover, we'd love to hear from you. Please reach out to us, at think energy at hydro ottawa.com Hi, everyone, welcome back. Now it's no secret that Ontario's electricity sector is transforming rapidly as it moves to both decarbonize the grid itself, you know, we have a very clean grid in Ontario, but it's not totally carbon free. And to support the growing demand for electricity as our customers across the province, take steps to electrify and change how they use energy. The show is all about exploring those changes, among other things, and today is no different. But before we dive into our conversation today, I think it would be helpful for me to spend just a few quick minutes on some basics about how our electricity grid is structured in Ontario, and who some of the key players are. Now I know some of our listeners will know this already, but it can be hard to keep track of all those key players. And Ontario's structure is a little different than some of the neighboring jurisdictions no two jurisdictions are exactly alike. So, a refresher is never a bad thing. Now the most basic description is that electricity is largely generated at central generation facilities. So, think nuclear power plants are your electric generating stations, some gas fired generating stations and large-scale wind and solar installations. We call these entities generators simple as that. That electricity is then transmitted across the province in an interconnected grid of high voltage transmission lines, which also connect to other jurisdictions such as neighboring provinces and states, and Ontario, Hydro One runs the transmission network. Now you've probably seen this transmission network. These would be the large metal towers that you see out in the middle of a field when you're driving along the highway or in rural areas that have electricity wires strung way up high in the air. The last stage before it gets to the end user is called distribution. So, this is where electricity is taken from those high voltage lines stepped down to a usable voltage for residential and commercial customers via transformers and substations, and then distributed over a network of overhead and underground wires, then these would be the wires that you would see at the top of those wooden or composite poles that are along the side of the road in your neighborhood. The entities that run this distribution part are called distributors, again, simple as that. So, there's a few other key players that are worth mentioning here. Energy Policy is primarily the jurisdiction of the provincial government, who sets the general direction and associated rules and regulations accordingly. The Ontario Energy Board or OEB is the regulatory body who governs what all those other players do and enacts the government mandate. And finally, at least for today's purposes, we have the system operator. It's called The Independent Electricity System Operator in Ontario, or IESO, who runs the system. So, if you're in Windsor, Ontario, or Ottawa, or North Bay, and you want to turn on your air conditioner, or plug your EV in to charge, the IESO is responsible for making sure there's enough power on the grid to handle that load. So, I hope everyone is still with me and feel free to pause and do some jumping jacks if that was a lot to take in. Our conversation today is going to be focused on the role of the distributor. So, for full disclosure, as you know, I work for hydro Ottawa who is one of those distributors, we serve most electricity customers in the City of Ottawa, and the neighboring village of Casselman and in Ontario, you will often hear distributors referred to as local distribution companies or LDCs. So, forgive me if I slip into that acronym throughout the conversation today, that's really just the sort of common name that we refer to those distributors as. But I'll try to mix it up and make sure that, that I'm explaining that acronym throughout as well. So, the distributor is really the front line, the customer facing entity of the entire electricity system. If you are an electricity customer, and you think about the electricity system, you are probably thinking about your distributor. Chances are you get your bill from a distributor, even though for most customers, most of what you pay on that bill doesn't actually go to the LDC. Some of it stays with your local distribution company, but most of it goes to the transmitter to the generator, to the IESO etc. When the power goes out, it's probably your LDC that you call and it's your LDC that will give you a restoration time. Sometimes outages are caused by issues up the line, so to speak in the transmission portion of the grid. But often the issue is a localized one. And it's your LDC that is identifying the problem and fixing it, whether that means rolling a truck to string new cable, or performing switching to work around the problem. And finally, it's your LDC that is really on the frontlines of the energy transition. While all parts of the grid must then have started to change, the LDCs are really working hand in hand with our customers to identify where and how fast and new demand is needed to bridge that gap between customers and policymakers to enable more and more renewable generation. And also to determine what new technologies or programs we need to pilot and scale up. And it's really the LDCs that are driving change in the way that electricity is managed at the individual customer level moving forward. So, to help us make some sense of this, I'm happy to have Teresa Sarkesian on the show today. Teresa is the president and CEO of the electricity Distributors Association, which is a role that she's held since 2016. This is actually Teresa second time on the show the first being back in December 2021. So we're happy to have Teresa back, Teresa, welcome back to the show.   Teresa Sarkesian  6:23  Thanks so much, Trevor. I'm really delighted to be back.   Trevor Freeman  6:27  Yeah, we're glad to have you. So, like I said, you were back on our show in 2021. I don't know if it's because of how COVID has changed our lives or if this is just the way things go. But sometimes, you know, weeks seem like years. So, 2021 is a long time ago. Let's start by refreshing our listeners on the role and mandate of the electricity Distributors Association.   Teresa Sarkesian  6:49  Sure, thing so the electricity Distributors Association, or the EDA our little acronym represents Ontario's public and private electric utilities that distribute electricity to 5.4 million homes, businesses and institutional customers across the province. And I should note that those 5.4 million customers really refers to build accounts so you have families that are behind a build account. So effectively the millions and millions of Ontarians and businesses that operate and live here are customers of our utilities. And as you know our members are on the front lines of power, and have developed a strong trust with their customers by providing safe, reliable and affordable service for over 100 years. The EDA itself provides analysis and networking and advocacy for our members to ensure that the energy policy direction and framework in Ontario is fair and balanced, supporting the financial viability of utilities to deliver service and ensuring affordability for customers. And long term, we are looking to ensure that our local distribution company members can become the premier energy solution providers to their customers, and that they're able to provide the value-added services that customers are already expecting from them but are going to grow with the energy transformation and electrification in the future.   Trevor Freeman  8:09  Yeah, it's kind of like I said, when people think about the electricity sector, they're probably thinking about their distributor. And the EDA is kind of that common voice for those distribution companies. So, you first joined the EDA back in 2009, and have been the president and CEO since 2016. So, we'll look ahead and talk about the future in a minute. But before we do that, tell us about how things have changed so far during your tenure. How are things different from 2009 When you first joined the organization?   Teresa Sarkesian  8:40  Yeah, and you know, this is almost like perfect timing, Trevor, because I've been at the association now for 15 years, I'm just marking my 15-year anniversary. So, feels really apropos to kind of reflect and look back. So, I want to break down my answer into two parts. So, I'm going to talk to you about some, I guess, just my own personal observations about the electricity system at large. And then I'm going to talk more about the changes in distribution. But some of the changes that I thought were really quite significant and profound, sort of when I joined the industry in 2009, I joined at a time when there was the Green Energy Act, and the province was looking to connect all kinds of renewable energy generation to the electricity grid. So that was fairly significant. Another thing that was happening with the province is that they closed down coal fired generation. That was pretty massive. In fact, I think, at the time, it was the largest kind of carbon reduction initiative in North America. And I think even to this date today, I think it still is something that Ontario really has to be proud of. Another thing that you know, at the time, I think that was you know, fairly significant in 2015 is just the expectation of what the demand would be. What was interesting, sort of like the past for 15 years, the demand from customers for electricity was actually flat or declining. And that's all changed. Now. 15 years later, we're, we're now forecasting, massive increases in in demand of energy, which could potentially be doubling in the future. And the other point I'd like to make is just the nuclear renaissance that we're having. I think when I joined the sector in 2009, I'll tell you, I think the public opinion of nuclear was actually quite low. And that's been completely turned around lots of geopolitical events around the world, I think, have driven that. And now that nuclear is having a huge Renaissance. And you're seeing, you know, lots of new investments in nuclear. And we're not talking about shutting down reactors anymore. We're talking about refurbishing and expanding. So those are some of the things that I've observed over the last 15 years that have really changed. And for local distribution companies, I think what I have seen is a growing expectation by both government and the regulators for electric utilities to do more to both support the grid reliability and meet growing expectation from customers. So, I started in the sector in 2009, it was right on the brink of implementation of smart meters, and time of use. And what was interesting is that was mandated, there were very few jurisdictions in the world that actually had mandated smart meters and time of use pricing. So again, Ontario is was one of the first. And so that was a big change for LDCs. To move from, you know, smart meters and having to bring in that technology and also support the technology of time of use. I did mention the Green Energy Act at the time, we suddenly had to connect 1000s and 1000s, of new solar and wind generation, as well. And that was all new. There were no protocols, there were no standards for that. So that was fairly significant as well. And when I kind of fast forward to I guess, more recently, there have been a lot of changes from government, I think they've really supported our industry, they understand the trust that we have, with our customers. And they've implemented, you know, a number of new changes in terms of rate structures, they've asked us to implement ultra low-rate pricing that can support overnight electric vehicle charging. And they've also asked us to introduce a green button digital platform that allows customers to download their energy data and share with third parties for you know, different assessments and tools for lowering energy costs. But it's all not, you know, unicorns and kittens, there's challenges to for our sector, grid resilience was, you know, not really, people talked about it in 2009, but not like they're talking about it now, because of climate change. And we are seeing more frequent storms, causing, you know, obviously, outages for the customer, and also significant damage to the distribution grid. And I know that hydro Ottawa has faced more than its fair share of very destructive storms over the past few years, we have Yes, I can't remember which Victoria Day weekend where we had, I didn't ever know how to say it the derecho or the derecho. So there, we weren't getting storms we've never even heard of before. And unfortunately, I think that is our new normal. So, grid resilience is something that we are very concerned about, and we need to make sure we've got the appropriate investments for that. So those are just a few of the highlights that, you know, when I came into the sector sort of things that were kind of ramping up, and then what's happening now, but I guess what I could say, the commonality is there's constant change in the sector. And what I'm seeing going forward is that change is going to be accelerated.   Trevor Freeman  13:40  Yeah, I mean, it's, it's fascinating to listen to you lay it all out like that. Thinking back to 15 years ago, it's hard to even remember, you know, not having smart meters, having meters that really just ticked forward and measured your consumption over the course of a month, and someone would come and read that. And, you know, having declining or even flat demand profiles that aren't increasing is so different from the world that we are in today. But I think what you said there at the end is really important. We are in our industry, an organization that knows about change, we're constantly changing, which helps us as we look forward into your point, we're going to see that level of change and the pace of change accelerate. So, I think that sets us up pretty well. So, let's start to look forward, then I know that the EDA is about to launch a new vision paper. So, we're going to dive into some of the details. But maybe let's start by kind of a high-level summary of what is the vision that you are trying to lay out with this paper?   Teresa Sarkesian  14:42  Okay, and no problem. So, I think what I want to start just give a little bit of background as to why we did this. We've done a couple of vision papers and implementation plans in the past. But you know, they were like seven, eight years ago and things have changed a lot even in Seven or eight years. So, what we've been seeing, obviously, I think the big change over the last few years has been the big focus on meeting Net Zero targets in 2050, that we are going to get to net zero in terms of our greenhouse gas emissions. Not only in Canada, but this is actually a bit of a global commitment, you know, for countries that have signed on to that objective. So, what happens when you set up, you know, those big audacious goals? You have all kinds of organizations and entities looking at how are we going to get there, how much it's going to cost? What do we need to do to get there? And so, when we started reviewing some of these publications, both in Ontario, Canada, and actually in other jurisdictions, they were very good. They talked about what supply mix that we need the investment in transmission, but almost 100% of the papers, Trevor, if you can believe this, just neglected distribution, no one talked about distribution, they didn't talk about how distribution is going to have to change what the investments would be. And then we'll so we said it's going to be critical for us to identify the electric utility role and the energy transition, and how the sector will need to be grid ready to support electrification, economic development, grid resilience, and customer preferences. So, we view that LDCs are going to be pivotal in enabling Ontario's low carbon economy, navigating the challenges posed by climate policies, electrification trends, and these evolving customer demands. And with Ontario's growing economy and the demands for housing intensify, LDCs must innovate to effectively meet these accelerating electricity needs and changing preferences. And right now, we've seen the ISO is predicting significant consumption growth from 144 terawatt hours in 2023, to 240 terawatt hours and 2050 not quite double, but it's getting close. And so, this rapid growth demands urgent attention to adopt new strategies and to ensure that the local distribution companies can make the necessary investments in grid enhancements to expand the capacity and capability of the distribution system. So, while reliability and affordability remain Paramount customers do expect additional value from their utility service. And, you know, we are seeing all sorts of things that are happening, you know, such as the need for swift electric vehicle charging installation, and other upgrades that will increase the electrical load. We see that LDCs are more frequently interacting with businesses that seek utility partners to achieve their energy management, sustainability and ESG goals. And in parallel, the LDC must prepare to respond to increase climate change induced extreme weather events. So, recognizing the essential role of LDCs in the energy transition, we've worked in collaboration with industry experts to outline a vision of the role of utilities, so they can enable economic development, housing growth and electrification. And the report identifies urgent and practical steps that LDCs in partnership with the government, and its agencies must take in the near term to achieve the benefits of this transition. So, what you'll see in the paper is recommendations related to the need for clear policy direction on regulatory frameworks to support LDCs in becoming grid ready, and with a continued focus on affordability and enabling a customer choice and opportunity. And we also discuss issues like workforce needs. And we also emphasize the role of human capital in enabling technological advancements. So that's very high level what it is, and I will get into it a bit more as we have our discussion further.   Trevor Freeman  18:41  Yeah, I think it's a good way to frame it of the entire sector is changing at all levels. But what you're really doing is laying out that vision that roadmap for the distributors, in particular, and I think that's great. Maybe like, who is the audience for this paper? Who are you kind of directing this at?   Teresa Sarkesian  18:59  Well, we're still putting the crossing the T's and dotting the I's., but I think it's about 80 pages. So, it's not going to be for everyone, obviously, you know, government decision makers, government, policymakers, people that work in their regulatory agencies and our energy board, the Independent Electricity System Operator, we did try to make it accessible. There is an executive summary that's about two or three pages, which I think will be of great interest to a lot of people to read. And I think it gives a very kind of a high-level overview of what's in the document. So that's something that we're trying to do. And, you know, obviously our LTC members are an audience as well. They've been working with us hand in glove the last few months we've had extensive member meetings we had a board committee that helped steer this paper. But you know, ultimately, the paper is really focused on our customers because its customers and businesses that are driving a lot of this change for the future, whether it's businesses that are on their own journey on environmental, social and governance ESG objectives, and they're looking for more low carbon communities to invest in its customers who are very interested in EV charging, and maybe what the opportunity for the batteries can be to sell that storage back to the grid. It's, it's really the customers that are driving this change.   Trevor Freeman  20:31  Right Yeah, and I mean, the nature of this medium is I don't know who's out there listening. But I'd encourage, you know, all of our listeners, when this comes out, take a look at it and get some insight into kind of how the distributors role is laid out there. So, let's dive into some of the details. You know, you outline obviously, some of the traditional roles and functions of the LDCs. So, from maintaining, owning and maintaining the infrastructure, the poles and wires, and doing customer metering and billing, that stuff's not going away, we're going to keep doing those things. But you also highlight some of these emerging roles that have begun to appear, or that we'll see in the next couple of years, you know, a more of a focus on distributed energy resources, like solar on roofs, for example, that LDCs are going to have to work to both enable as well as integrate into our own systems. It's going to include things like more customer programs, and rate design, etc. I'm curious, you know, how are LDCs going to balance that traditional role that we've already been doing, along with this rapidly new expanding set of roles that we need to tackle?   Teresa Sarkesian  21:38  That's a great question, Trevor. So, look, LDCs will continue, as we always have been to be responsible for safe, reliable and affordable delivery of electricity to customers, customers can count on us to do that 24/7. And even with all these anticipated grid expansions, we're not going to be shut down, if the critic dispatches so, you know, we're experts at multitasking in our sector, and we will continue to do so. And with the increases, as you mentioned, in distributed energy resources, and electrification, there are the pressures for us to adapt, modernize and change how we ensure the safety and reliability in the service to customers. And the emerging roles and responsibilities aren't something that's in the distant future. You know, as I mentioned before, changes the constant, we have been engaging in ongoing adaptation. And so, when I think about the future, and I think about what we call grid modernization, it really is part of the ongoing continuous improvement, and the pursuit of the digital utility of the future, that every utility is on that journey. So, you know, utilities have been bringing in new technologies, particularly related to information technology, communications, and digital solutions. And so, while we're in early stages, we are expecting our members to become more digitally based in the future, they're going to be introducing advanced distribution management systems to monitor the grid. And they're also going to have distributed energy resource management systems to monitor all the connections that are behind the meter. So, I think what is different now than in the past, is simply that the pace of change is being dramatically accelerated. So, for example, it took us about 100 years to get the grid to its current size, yet, we need to almost double the current grid in 25 years. So, we have to move four times as fast. And the grid is not going to be built with just simple poles and wires and one way energy flow like it has been for basically the last 100 years, it's going to be a lot more complex, we're going to see two-way energy flows, so it's not just us sending power to the customer one way, they're potentially going to be selling back their energy generation or their energy storage back onto the grid. So, we need to have that temerity, that two-way, power flow. So that's going to be a big change. And we also expect there to be a lot more customer interaction. They want to leverage their own generation and storage behind the meter. And we as utilities, want to be able to leverage that to help us with you know, reliability, Storm outage, other emergency situations. So, we see there's going to be a greater interactive relationship with customer than simply, you know, maybe sending a bill to them or offering them conservation programs, it's going to be much more dynamic than it has been in the past. And so, you know, over the last two decades, and we talked about this a bit already, the utility has been modernizing the system in response to government policy initiatives, regulatory requirements, and customer preferences. One other example, recently, utilities were required to implement something called green button. And we've been also engaging by bringing them more into the system through net metering. And a lot of our members are also involved in various pilot projects with the Independent Electricity System Operator and with Enercan to look at all kinds of new LTC models and functions. So, and you're going to see a lot of this actually, in our vision paper is that to really be effective, cost effective. To make sure this happens at the accelerated pace, we do need for there to be proactive policy and regulatory changes, to remove barriers and empower LDCs to embrace these new evolving roles in shaping the future of the energy sector. And as I mentioned before, customers are demanding it. And I want to point out a research report that came out by the International Energy Agency just late last year. And they made it very clear that in quite a number of countries around the world, the lack of the regulatory permission to provide more investments in the distribution system is now becoming a significant barrier to new renewable energy projects connecting on the system. And while we don't have that situation here in Ontario, if we don't start moving quickly, in terms of reforming the regulatory context, then we might be like some of these other countries, and we don't want to be that a barrier, you want to be able to enable what our customers want on the grid.   Trevor Freeman  26:07  Yeah, so I'm going to ask you a question about that last point in a minute. But I think your framing of the ways that the sector is going to change, and the way our customers are going to interact with us is going to change is really great. And it's something that you know, often comes up in conversation. And I often say, there is no single strategy or tool here, we can't solve the coming challenges with just more poles and wires. We can't solve it with just new innovative solutions, we need all of those things, we need more poles and wires. But we also need more programming, more innovation, more technology, we need to utilize those distributed energy resources out there on the grid. So, I think that's a great way to frame it. Okay, so let's talk about grid planning a little bit. So LDCs play a really key role in helping forecast the needs of the future, both for our own distribution systems, but also feeding up into those broader provincial needs. So, the insight that we gain from our customers, we pass up to the IESO, for example, so that they can do planning at the provincial level. Traditionally, this is a pretty consistent process. You know, in the past, we get a sense from municipalities and developers, how cities are going to expand and grow. And we've generally been able to count on the typical home using roughly the same amount of electricity as homes that are out there today. So, we account for a certain expansion of commercial customers based on the Intel that we get from those customers. And we know roughly what they're going to use. The problem is that model's kind of being turned on its head a little bit. So, we now need to account for even our existing customers increasing their load because they are electrifying or they want to add EV chargers. And new developments today are likely going to have increased demand compared to some of the historical developments, because we're going to see all electric communities or at the very least more electrified and uses. So I know you don't have a crystal ball yet that tells us exactly how this change is going to happen. But what are LDCs doing to adapt their long-term grid planning to account for this uncertainty?   Teresa Sarkesian  28:22  Yeah, you're so right, Trevor forecasting is getting more challenging. And I just want to start with a little story before I get into my answer about that. So, you know, electric vehicles are kind of the hot thing right now. And you know, although people I think are still on a waiting list for certain cars, there's lots of others that are available. And so, one of the concerns that our sector had was we didn't know where these electric vehicles were going to pop up. And we weren't getting any kind of pre advanced warning when people started making orders or, you know, advanced purchases for electric vehicles. So, we actually did a great advocacy campaign, with the province with both the Ministry of Energy of the Ministry of Transportation, to secure postal code data for utility, so they could see where people were going to be purchasing electric vehicles to help them with their own planning, in terms of, you know, making sure that their local feeders were upgraded their local transformers, and so that just got announced a year ago. But that's obviously not going to be good enough. And that just tells us about electric vehicles, you know, in the near term, but this is I think, you know, having sightlines into our customer behavior, whether we do that proactively with you know, consultations and communications with customers, or we can do it by you know, pinging the meter, or getting data such as postal codes. We are going to have to, you know, adapt and have greater visibility and sightlines into the customer. And so this is that some of that technology that I was talking about earlier, the sophisticated future grid is going to need lots of visibility and transparency, for usage and investment to be able to, you know, look at these two way power flows, look at how customers are behaving, in order to better plan the system, we also need to maximize and optimize the data that we have, you know, from our planners, it's going to be vital to protecting the grid reliability and resilience, we're going to have to have more partnerships with municipalities, in terms of their energy planning for the future and things that they want for their community. And, you know, one of the things that we're asking for on our paper is actually to, you know, rethink the distribution system plan, that the utilities have to file with the OMB every five years, and start building in a, you know, Grid Modernization plan within that broader plan. So, we can get the regulator to start looking ahead and seeing what these requests are, it'll be important to also have various performance metrics and filing guidelines for grid modification from the energy board. So, you know, these are some of the things I think that the membership is going to have to look at but it is going to be a very iterative experience, because it's just it's the pace of change is the big unknown. And so, everyone talks about these things. But you know, I saw something today, I think it was from Ford Motor Company, and they're kind of slowing down, it's taken them a while to retool their plants. So that could take an extra two years now for them to be up and running and producing electric vehicles. So, there's going to be all these other pieces of the puzzle that are constantly going to be changing a moving and evolving. It is I think, planning for the future is going to be very challenging. And I do expect the province to start talking about this higher level, maybe starting at the end of this year, they just came off a massive exercise related to the energy transition electrification panel. And I do expect to see more guidance from the province as well, in terms of how they're going to manage this planet, because it's not just planning for us. It's planning for everybody else in the system, too.   Trevor Freeman  32:02  Yeah. And for listeners out there, if you haven't had a look at that energy transition electrification panel reports, a really fascinating read. So, I'd encourage you to take a look at it. You mentioned a lot of interesting things there. So, for our listeners, and I'll probably do a future episode on this so I won't get into detail, but LDCs typically have to file five-year rate applications once every five years that really lay out their plans for those five years and how they're going to fund them. So coincidentally, hydro Ottawa was getting ready to do our next one. And like I said, I'll probably talk about that on a future episode. But one thing we did when it comes to forecasting is, we conducted a electrification study that looks at if we electrify by 2050, like our plans, say we will and you know, society wise, what does that mean for the grid? And some of the inputs we took is, you know, what are the federal plans for electrification? What are our own municipal plans for electrification? What are we hearing from our customers, and that really, is helping us modify and change how we do grid forecasting, based on some of the changes that we're seeing from our customers. So I think this is a really important piece that, like you said, we're going to need to iterate on we're not going to get it right the first time. But we're starting to think of how do we need to change the way we do things in order to keep up with what our customers are doing.   Teresa Sarkesian  33:28  I think one thing I've seen more of the last few years, because this is much more complex than it's been in the past that I've seen, like the IESO, for example, they've done more, you know, scenario setting. So, when they've had their, you know, their APO's and AER safe, they sort of had other two or three scenarios, and they're constantly updating their numbers every year. So, these are other changes that we're starting to see. And even myself, I was just looking at the provincial budget detail the other day, they also set out, you know, scenarios as well. They're just not picking Oh, it's going to be, you know, X amount of deficit. And you know in 2028 they're actually forecasting out different scenarios. So, I think that's another piece I see more in play, that people will, you know, showcase what assumptions they have, and will have maybe two or three different scenarios as well.   Trevor Freeman  34:21  Yeah, and I think it's a, it's a great way to tackle that unknown component to where we've never really been through a change like this before. We've never wholesale changed the way we use energy in our society. So, there's a degree of uncertainty, obviously, and I think, targeting out that kind of, let's call it high, medium, low scenario, or whatever the metric might be, is going to be really critical for us to make sure we're staying within the boundaries of what's possible and what's probable and refining that constantly as we move forward. So that's a great point. Something else you mentioned a little bit ago, that's, you know, could be a bit of a nebulous term is grid modernization now I've actually got a future episode, and specifically about grid modernization and what hydro Ottawa is doing, I think it might actually be our next one. So, we don't need to go into all the details on this. But let's just help our listeners understand what do we mean when we're talking about grid modernization? And why is this important? Why is it important to our customers that we do this kind of back-office improvement?   Teresa Sarkesian  35:23  So, I'm going to keep it really simple, because I know you're going to do a deep dive on it and a future episode. But essentially, Grid Modernization are improvements that LDCs will make simply to augment our capabilities, and enable us to offer new or improved services to customers. So back-office improvements might look like things like real time sensing, and monitoring systems to improve efficiency and reliability. Or we may be investing in new digital infrastructure communication systems to improve safety, cybersecurity, it can also include more visible improvements to safeguard our infrastructure against extreme weather, and climate change to reduce outages. And like one, I guess, example that some of your customers might already be recognizing, you know, we made investments in green button, which enables customers to download their data, send it to a third party if they want to save on customer use. So, it really is the whole soup to nuts, it really is not just one type of technology or solution. It is a combination of a whole series of things that the that the utility will need to do. And I think why we want to do it, I think when we look at all of the pressures on the system, from NetZero objectives to housing priorities, you know, to accelerate broadband development, and support electrification, the pressures seem to be never ending. And the only way that we can respond to all those pressures, is to be grid ready. And, you know, like I said, it's it is a form of continuous improvement. It's just that now it's the pace accelerated pace is such so extraordinary, that we need to have a more dedicated plan. But most importantly, we have to make sure we have dedicated attention by policymakers and regulatory decision makers as well. Because right now, there isn't that dedicated attention to this very important task. Yeah,   Trevor Freeman  37:28  Yeah, I mean, it's, it's great that you bring up all these pressures that we're feeling that it's I think it's time we kind of talk about that elephant in the room, our customers often ask us about affordability, or we're hearing from our customers about affordability, I was actually at a customer event not too long ago, and talking about the change that we're going to see here talking about some of this, you know, large scale transition of our energy sector. These are not small investments that we have to make. We're talking about both an increase of our infrastructure, you know, you mentioned almost doubling the capacity of the grid. We're talking about modernizing our grid systems, that's a lot of back-office work with new technology, and bringing on new programs. Like this is a big change. Energy affordability is already a kind of a challenge today for some folks. So, as we get into this new investment that we have to make as we start moving down the path of the energy transition, how do we balance affordability, especially for our vulnerable populations, with the level of investment that we know is necessary to do the things that we have to do? Yes,   Teresa Sarkesian  38:42  Yes, that's the multibillion-dollar question, Trevor. And it's something I'm going to carve out my response, because there's some things that we've put into our vision paper for the future, because affordability is absolutely critical. And as you know, this is basically a massive restructuring of the economy going forward. So, there's may be other participants who might be playing a funding role. So, you know, right now, obviously, you know, customers aren't monolithic, and you know, residential customers who are struggling to pay bills. Do you have some programs that they can, that they can access, they have the low income Energy Assistance Program, they have the Ontario electricity support program. Some of those are funded by the tax base, some are funded by other electricity customers. The province also gives a rebate to customers in Ontario, and that's a pretty big rebate. I don't think a lot of residential customers are aware of it but it is over 7 billion annually to residential small business customers. That's a lot of money. But I don't know if customers really appreciate that. So, I don't know what's going to be available going forward. These are some of the challenges that you know policy makers, you know, have to address as well. So, when we were thinking about this as part of our paper, we sort of looked at it from a number of perspectives. So, the federal government has set up all these Net Zero targets, they've set out, you know, targets for electric vehicle manufacturing, as well. And so, it might be appropriate for them to share part of the burden with this massive energy transformation. And it's interesting, we actually pulled customers about 2000 Customers two years ago, we asked them a whole series of questions about the changes going forward. And customers do have different perspectives about who should be paying for some of this energy transition. So, when we asked them about who should be paying for electric vehicle, charging infrastructure, and they said, Oh, electricity, customers should pay for that, because that's something that everyone's going to benefit from. When we ask them about, you know, who should be paying for the electricity grid, to address climate change and hit Net Zero targets, they actually the majority, 58% said, the taxpayer should be paying for that. So, I think that's just a very interesting data point. But it's something that, you know, we've been active on in terms of having those conversations with the federal government, saying that, you know, you have offered different subsidies to attract different companies to invest in Ontario, based on our clean grid, but we need to have the whole grid support it. So, you know, we're pursuing federal government support, we also are looking at increased maybe private equity engagement in in our sector. So right now, we have a couple of private members, but there's not a lot of private equity money in the sector, most of our members are municipally owned, and municipalities can't invest in their utility, probably even if they wanted to, because they're in short supply of funds as well, they have their own taxpayer that they have to deal with. So, one of the solutions we are putting forward to government is to increase the private equity threshold, so it doesn't trigger additional taxes, right now, it's only 10% ownership. But we're saying that maybe a tool in the toolbox should be up to 49% ownership. So, it would allow private equity to come the patient capital, they're not maybe looking to seek a return right away. So, there's some you know, flexibility there as well. Another thing we're looking at is to revisit the debt equity ratios of utilities to manage the costs over the long term. So, you'd be effectively amortizing on some of those grid investments as well. So, these are some of the ideas that we have around how we can basically fund the energy transition going forward. You know, and some people say, Well, if you could get customers to think about their energy usage holistically, so if they're going to be, you know, moving away from a, you know, a combustion engine car, and they're going to be using heat pumps, instead of, you know, natural gas heating in their home, if you could get people to think holistically what they're saving on the kind of, you know, GHG side of things, versus what they are going to be spending on electricity, they may actually be spending less if they look at it holistically, but I don't really know, to be honest with you, so that I'd rather focus on the things that we could ask government for, as opposed to asking customers to be, you know, thinking more holistically at their entire energy usage, which is just not how they think. And I think, to change that behavior, would be quite a monumental task going forward. But those are some of the things that we think about, because we are very concerned about the affordability going forward, because it is such a massive change that we're all experiencing.   Trevor Freeman  43:50  Yeah, I think this is another example of there is no single solution here. There is no you know, silver bullet that's going to help us pay for all of this, we need all the tools on the table here, we need to look at all different options. And I think you outlined a couple of them, you know, in what you said about our customers impression of some of this change and who should pay for it. Last episode, I talked to David Coletto, from Abacus data, and he was saying on the whole Canadians really believe that an electrified energy system, we know once we make that transition, we will be more secure, it will be more affordable. And I think those customers who have made some transition in their lives can see the benefit of that. But sometimes the initial hurdle is pretty hard to get over that upfront capital cost. And so, looking for ways, both at the customer level as well as at the utility level, the LDC level I think is going to be important to help get over that initial capital outlay that's required, so that we can realize those benefits that we all know where they are that we know we'll see. So. Yeah, great filling some of those out. So, I know I mentioned that I will get back to this. But I do want to talk to you about the advocacy role that the EDA plays. So, you mentioned, you know, talking to governments and Ontario, the provincial governments across Canada, the provincial government has jurisdiction over most energy matters. So, advocacy to the government is a key role that you play. I'm curious, what are you asking the government to do or to provide to help some of these changes that we're talking about happen? What is the advocacy that you're pushing for with the government?   Teresa Sarkesian  45:32   So, I'm going to try to keep it really simple and just sort of, you know, tie it back to our vision paper for now, because at any given time, I'm working on 20 or 30 l policy issues, primarily with the Ontario government. But this past year, we have expanded our work to also include the federal government, because they have investment tax credits that we are interested in for our members to see if they could be eligible for those. We're interested in them changing things to the Canada Infrastructure Bank, also to provide new sources of equity there. And we're also pursuing grants, as well, for grid modernization. So provincially, a whole whack of issues. But I'm going to go back to our paper just to give your audience a little bit of a sneak peek on some of the things that we're going to be asking for. So, one of the first things we're going to be asking for is to get a common understanding and definition of grid modernization, and electrification. And this is not really new of an idea, we kind of have copied it from the US, there's a lot of jurisdictions, there where very clear objectives that have been set out in order to justify grid modernization, investments. So, we think that it'd be beneficial for Ontario to do that, because then once you have those objectives in place, it is going to make it a lot easier to be able to prioritize grid modernization capabilities, functionalities, and investments in line with those objectives. You know, and then from there, you know, we're looking at creating a series of foundational investments. So going forward, some of the things that we think are foundational, are things like the distributed energy resource management systems and the advanced metering infrastructure, which is sort of like smart meters 2.0, for lack of a better term, and also the advanced distribution management systems. So, we see those are going to be foundational pieces that all utilities are going to need to be able to help customers interact with the grid, and they're going to be necessary grid investments. So how what we see for those is we would like it to be similar policy direction, like we had for smart meters and green button, where you have government mandated activities. And then those are given, you know, a kind of lower standard of evidence with the Ontario Energy Board to support that capital infrastructure, they're deemed as priorities and ties back to that initial plan, where you set objectives, as long as those objectives can be that then those should get a pass through.   Trevor Freeman  48:12  If I could jump in right there just for our listeners. So what Teresa is describing here is, at the moment when there are unique things that are not part of government mandate, yet every LDC and Ontario, of which there are many 60, something I don't even have the number in front of me but every LDC when it comes time to enact that project has to go through a whole exercise of justifying it proving why it's necessary, saying this is why we want to do it. If there was some commonality across LDCs in the province, we wouldn't have to put as much effort into, you know, the report writing side of it, we could just get down to business and make these changes that we all know across the province are important. So, I think it's helpful for us to understand how that process works.   Teresa Sarkesian  49:00  Yeah, and thank you for interjecting on that, Trevor, because if government wants us to move fast, we can, but we need that certainty. So, you know, we're no different than any even though we're regulated monopolies. We're really no different than any other business that wants to do business in Ontario, you're always looking for certainty and clarity, from legislation from policy from regulation, because the uncertainty is what slows things down. Another recommendation that I'm moving forward with is that we need to move beyond pilot projects. I had a conversation with a consultant who is working with Enercan on this and they want to move beyond I love their term, death by demonstration. We've got a couple of dozen pilot projects currently in the sector, whether they're funded provincially through the IESO or they're funded federally through Natural Resources Canada, and you know, there's some very exciting results that are coming out of those. But some of those pilot projects have been going on for all almost four years, in one case, almost five. And at some point, you need to pull off the band aid said, yes, this is a success, all LDCs would be eligible for funding in this. So, we need to be able to scale it up. Or we just say no, that's not going to work. But being in this constant state of the pilot projects, while it's informative, at some point, someone has to have the courage to say we're moving forward, this is going to be scalable. Another recommendation we have is to create an action plan to develop a comprehensive human resource strategy to address quantity quality, and partnership aspects of the labor force going forward. There's some great work that electricity, Human Resources Canada has done. And, you know, DC 28,000, replacement and new jobs in our sector, by 2050 and that's, the electricity sector at large across Canada. And I did some, I think back of the envelope calculations to try to figure out, okay, some assumptions about distribution. And we're looking at close to 10,000 new positions in the sector, over the next 25 years. Every sector is having challenges, filling current jobs, never mind jobs, that we're not even sure what they are quite yet. So we don't necessarily have the right programs at the universities and colleges or private training institutions to start getting the right people and talent into our organization. And, you know, so we need help for that. And, you know, I am encouraged, I saw a little announcement out of the province yesterday to have more electricians down on the Chatham Kent area, because that's the whole greenhouse industry. And so, I said, Okay, that's exciting. So, people are starting to pay attention, but we need it more than just in one local community, it needs to be province wide. And, you know, like I mentioned before, we need to have more conversations about what the funding models are going to be to fund the energy transition. So, these are some of the issues and recommendations that we're taking forward from our vision paper. But day to day, I guess that's the other thing, I want to mention in terms, the change I've seen, I've never seen us work on so many issues, prepare so many submissions, invest so many staff at various tables and working groups. And we love doing all that work. We love representing our members at every table of discussion possible, but I've never seen so many. And they're not just oh, you're there for a month, and you're done. Some of these they are multi year. So, they have longer legs, because they are far more complex. But you know, we're working every day, you know, for members that way. Very, very proud to represent our sector think it's a fantastic sector. And the fact that they're going to play such a pivotal role in the future makes us only want to work harder to make sure we get the best of everything for our membership.   Trevor Freeman  52:54  Yeah, I know, we echo that at our level, we can certainly see a lot more stakeholdering and engagement happening with all players in the sector, but especially the government as they figure out this energy transition to right, let's not, you know, let's not forget that the government needs to figure out where policy needs to go to lead it, and it's a great role that you're playing to kind of bring the voice of the distributors to the government. Because again, as we've talked about a couple of times, we're really on the front lines, and we're hearing from our customers, and we're seeing what needs to change right at that customer level, in order to enable some of this stuff that's happening so that that conversation between the LDCs and the government I think is really important. So you know, we don't work in a vacuum, I just mentioned a number of stakeholders in our sector. And I highlighted the interconnected nature of our grid at the beginning of our conversation. There are a lot of different players working together to really, at the end goal is bring power to the customer. How do you see the existing model changing or expanding in terms of, you know, the kinds of partnerships that LDCs have moving forward? So you know, you mentioned private equity is being a potential upcoming role. There are things like technology companies that are developing innovative solutions, who, you know, we maybe were a bit more arm's length with in the past. There's a changing nature of our relationship with the customers, you brought up the idea of going from one way power flow to kind of two way back and forth. arrangement. How do you see that partnership evolving in the future?   Teresa Sarkesian  54:30  Well, I think the good news is, there's a very strong foundation knowledge to build on. So, I'm going to talk about three different areas. I'm going to talk about sort of shared services across utilities, and I'll talk about a partnership with the private industry. And I'd like to talk about the engagement with customers as well. So firstly, there's lots of shared services going around in the industry already. There are all kinds of partnerships that members are trying to reduce costs for customers and find the best solution. So instead of saying, having 60 utilities run, seek out the best solution, you know, you get everyone working collaboratively to find a solution at the best price for customers. So, we've seen a lot, just in my 15 years I've been there you've got in the past, there was, you know, common delivery of conservation programs, members work together on common engineering standards, lots of mutual aid assistance agreements across among utilities, for Storm Recovery. I've seen shared billing services, bulk purchasing products, and shared control room practices and services. And I've seen private sector play a much bigger role in utilities, as well. I've had the privilege to attend some openings, and launches of micro grids, where you have maybe a solar company and an energy storage, battery company, that are part of that group with utility, creating a micro grid for their community to provide maybe warming and cooling charging services when there's a major outage, for example. And I've seen now, some smart grids, you know, one that's already been implemented up in the north that has a significant private sector partner. And I've seen it also there's a new one, that's another one in the north, that's going to be developed with a private sector partner. And I've seen, not just Ontario businesses, I've seen what businesses come in one of our members is doing a distribution system operator pilot model with a partner in from Norway. So, I'm really encouraged, I think the foundation is already there to kind of build on all those successes we already have, and do more, you know, and we talked about the customers going forward as well, that they're going to be to help playing a role, or we hope they're going to be playing a role. Because there's a lot of energy, battery storage and solar generation, sort of behind the meter, whether it's a farm, or it's a residential customer, or it's a big industrial customer. And so, we want to be able to optimize all of those resources into the system to be of benefit to all customers to reduce costs. But we'd have to give an incentive to those customers to participate, no one is going to let you know a utility access their, you know, solar panel generation or their battery storage, unless they're going to be getting paid to do so. And I think that's going to be really important going forward, because we don't want to over build the grid, I mean, the grid is going to be so big, going forward. And we have to find ways to avoid over building it. Because we don't want to be in a situation where you know, customers are having to pay too much for a grid that's not properly optimized. So trying to find solutions behind the meter, that will maybe either avoid or delay bigger generation investments or transmission investments, or even actually distribution investments, we want to optimize that. But right now, there's not really a lot of permission to do that. So we need to get that legislative and regulatory permission to do that, to turn those, you know, more passive customers into prosumers, that they're basically your their proactive customers by selling their energy storage back to the grid. So I'm really optimistic. I think we've got a great foundation work to do on the customer peace, letting them participate as prosumers and the system, but I'm pretty optimistic that that we can get that job done.   Trevor Freeman  58:27  Yeah, I think it really highlights, there's a lot to be excited about when it comes to the change, that's going to happen. There's a lot of opportunity out there both for the LDCs, for the other stakeholders for our customers, that this energy transition, this change is going to bring about, you know, there's some challenges to I know, he talked about the challenges. I wonder, though, what do you see, as you know, one of the single biggest are a series of risks to achieving the vision that you've outlined in the paper, how could this go off the rails and not happen the way we need it to happen?   Teresa Sarkesian  59:03  Well, I always like to be glass half full as opposed to half empty, but you're taking me down that road? Trevor? So I'm going to answer that question.   Trevor Freeman  59:11  It's my job.   Teresa Sarkesian  59:11  So you know, obviously, our vision for the future role is big, but it's practical. The energy transition is upon us now. It's not something to contemplate for the future. So we think that the biggest risk is effectively inaction or kind of, you know, kicking the issue down the road, 510 years. We're seeing this right, nearby jurisdictions in the US are taking action. There's been significant funding out of the Biden administration, for all kinds of initiatives from you know, cybersecurity, to grid modernization down there. They're doing they're very competitive. They want to attract businesses, to the US. And so, you know, that's a major competition for Ontario. So if we don't seize the opportunities to kind of start working on these important issues now, we could lose economic development opportunities, we could lose jobs, we could lose investment, we could lose our talent as well, that may want to move to another jurisdiction. So to mitigate that risk, the LDCs, and policymakers have to work together on developing a shared vision around electrification and grid modernization, develop a plan of action and create a realistic timeline to turn that vision into reality.   Trevor Freeman  1:00:26  Yeah, it's a it's a great point. And I think it's important for people to understand that change is happening, the change is going to happen, whether we want it to or not. And, you know, often sometimes people say, Are we are we really going to see this change? I think we're already seeing it, we're already seeing customers want to change the way they interact with energy. The risk here is if we don't react quick enough or properly enough, the costs of that change becomes higher the reliability of the grid that we're working with, goes down, that general customer experience is not where it needs to be. And then you've highlighted some other ones, you know, we can really struggle with talent if we're not offering them the kind of cool innovative roles that they're looking for. But the neighboring jurisdiction is, so it's not so much that the change may or may not happen, it's how do we react to it in a way that really serves all of our stakeholder the best. So, Teresa, this has been a really great conversation. And I really appreciate you taking the time to join us and chat with us today. I think there's a number of things that we talked about today that really set up future conversations I'm going to have nicely. So thanks for the half for teeing that up. And this is your second time on the show. No doubt, there'll be a third time because I think there's a lot more that down the road, we can we can pick apart. So thanks for that. We typically end our interviews here with some common questions to all our guests. So to start off, what is a book that you've read that you think everybody should read?   Teresa Sarkesian  1:01:56  So one I recently enjoyed it's by a friend too. By Darrell Bricker, he wrote Empty Planet, and that is very, very good talks about actually declining global population. And what that means from everything from, you know, businesses to climate change to pension plans. So it's a fascinating read. People have time for it.   Trevor Freeman  1:02:19  Yeah, very cool. I'll check that out. So kind of the same question. What's a movie or a show that you'd recommend to everybody?   Teresa Sarkesian  1:02:24  I watched one a few months ago was a Netflix series called the Blue Zone. And it was an investigation on people who had made it to 100 I think they called Central Jamarion’s I can't remember the name. But basically, they interviewed all these people living around the world about what it takes to get to be 100. So I really enjoyed it. It was just, it was just very beautifully done. And the people they talked to, I found fascinating and so interesting. So I really enjoyed it.   Trevor Freeman  1:02:52  Yeah, I also watched that one that was really great. If somebody offered you a free round trip flight anywhere in the world, where would you go?   Teresa Sarkesian  1:03:00  Well, I couldn't pick just one place, Trevor. So maybe I could like, have like around the world trip. But Sydney and Tokyo are places I really want to go to   Trevor Freeman  1:03:09  Have you been there before?   Teresa Sarkesian  1:03:11   No, no, but I think they look like places. Totally,   Trevor Freeman  1:03:16  Totally. Who is someone that you admire?   Teresa Sarkesian  1:03:18   for years it has been Terry Fox, great. My kids are in a big, I don't want to say Terry Fox phase, but they obviously they learn about Terry Fox a lot at school. And so they often will come home talking about Terry Fox, and we've got a little book that we read about, you know, the story.   That's fantastic that he really is an exemplary Canadian. And if he can only know today, what he has achieved, you know, even though his it wasn't able to make his run across the country, because unfortunately, he passed I think he'd be blown away by the fact that people have kept the memory going. And you even talking about your kids, you know, obviously doing things to support his memory, and his initiatives. And he's just extraordinary to me.   Trevor Freeman  1:04:04  Now, there's definitely a lesson there. And we don't always know the impact that we are having. And we may never know the impact that we're having. long as we're kind of aiming at the right things. Good things will happen. So finally, to wrap it all up, what's something about the energy sector or its future that you're particularly excited about?   Teresa Sarkesian  1:04:23  Firstly, excited about everything. But if I had to sort of pick one, I am very excited about the potential for customers to be pro sellers and engage with the with the energy system. I think that could be absolutely transformative going forward. So I'm excited. And I hope to see that before I retire, that's for sure.   Trevor Freeman  1:04:45  For sure. I mean, I think there's no question. We're going to see lots of change, as we've talked about a lot today. And I'm excited about that, too. So that's great. Teresa, thank you again for coming on the show. I really appreciate it and it's been great chatting.   Teresa Sarkesian  1:04:57  Likewise, thanks so much, Trevor. Really enjoyed Our time together.   Trevor Freeman  1:05:00  Right Take care. Thanks for tuning in to another episode of he thinkenergy podcast. Don't forget to subscribe wherever you listen to podcasts and it would be great if you could leave us a review. It really helps us spread the word. As always, we would love to hear from you. Whether it's feedback, comments, or an idea for a show or guests. You can always reach us at thinkenerg@hydroottawa.com

Decarbonization, the energy transition, and combating the climate crisis are critical to the future of Canadians (and the planet). But we all have different priorities and opinions. In episode 134 of thinkenergy, David Coletto, founder and CEO of Abacus Data, unpacks some of the key issues Canadians face today. Abacus Data is a Canadian market and public opinion research agency, delivering insights to guide policy decisions, messaging, and how to foster collective dialogue about pressing challenges. Related links   Abacus Data: https://abacusdata.ca/  David Coletto on LinkedIn: https://www.linkedin.com/in/%F0%9F%93%8A-david-coletto-%F0%9F%8C%8E-b44a8622/  David Coletto on X: https://twitter.com/DavidColetto   Trevor Freeman on LinkedIn: https://www.linkedin.com/in/trevor-freeman-p-eng-cem-leed-ap-8b612114/    To subscribe using Apple Podcasts:  https://podcasts.apple.com/us/podcast/thinkenergy/id1465129405   To subscribe using Spotify: https://open.spotify.com/show/7wFz7rdR8Gq3f2WOafjxpl   To subscribe on Libsyn: http://thinkenergy.libsyn.com/ --- Subscribe so you don't miss a video on YouTube   Follow along on Instagram   Stay in the know on Facebook   Keep up with the posts on X --- Transcript: Trevor Freeman  00:07 Hi, welcome to thinkenergy podcast that dives into the fast changing world of energy through conversations with industry leaders, innovators and people on the frontlines of the energy transition. Join me, Trevor Freeman, as I explore the traditional, unconventional and even up and coming facets of the energy industry. If you've got thoughts, feedback or ideas for topics that we should cover, we'd love to hear from you. Please reach out to us at think energy at hydro ottawa.com. Hey, everyone, welcome back. On this show, we often hear from energy experts, whether that's talking about a specific technology or up and coming solutions, or speaking with people that represent organizations who are playing a key role in the energy space. And while that's great, and we could obviously learn a lot from that. It's also important that as we're having those conversations we're doing so with a good understanding of the context around us. By now, I hope we are all very familiar with the concept of knowledge bubbles, because I'm passionate about decarbonisation about the energy transition. And especially because I work in the energy sector. I speak to and hear from a lot of like minded individuals, we share common drivers and use a lot of the same factors to make our decisions. For example, when my own personal heating system, you know, a standard gas furnace was nearing the end of its life about four years ago, switching to a less carbon intensive option was really important to me, and that factored heavily in my decision. Even when my furnace ended up dying in the middle of January, before I had a chance to do all my research and forcing me to make a really quick decision. But I know that not everyone thinks that way. And nor do they have the luxury to think that way. For most folks getting something affordable and quick that provides heat and as easy to use is the most important thing. fuel sources low on the list. And my first appearance on the show when our previous house, Dan asked me why I was interested in taking over his hosting duties. I noted that while I was encouraged that there does seem to be a general consensus around climate change being a real thing. Finally, at least for the majority of Canadians, we as a society are far from aligned on the exact strategies and tools that we need to deploy in order to do something about it. You know, nor is climate change, the only thing going on in the lives of everyday Canadians. There's an affordability problem, there's a housing crisis, we're worried about having an effective health care system. And seeing parts of that, you know, not work so well. The list of things that matter to Canadians is long. And we as a society are not homogeneous in our thinking. So that is why I think today's conversation is really important. David Coletto, holds a PhD in Political Science from the University of Calgary, and is the founder and chair and CEO of abacus data, a Canadian market and public opinion research agency. So David and Abacus have really made it their mission to help all of us better understand what Canadians are thinking and feeling about kind of everything. It's this insight that helps drive policy decisions, messaging, and ultimately how we can best have a collective conversation about our path forward. David, welcome to the show.   David Coletto  03:28 Hey, Trevor, thanks for having me. Great to be here.   Trevor Freeman  03:30 Great. Let's start with the basics. You've described yourself as infinitely curious, passionate and eternally optimistic? First of all, that's a pretty fantastic start to a bio. But help me fill in the blanks here. How did you come to start abacus? How do you maintain that curiosity, passion and optimism?   David Coletto  03:48 So yeah, everyone asked this question like, when did you want to become a pollster? Like, was this something you always wanted to do? And it's funny because it is, I don't know the exact moment. I don't think there was like a light bulb that said, I want to do this. But I think over the course of high school, and then, you know, as I thought about what I wanted to do, after high school, I was really always interested in two things. One is politics. And then two was stats, I was that kid who like, I'm aging myself here a little bit, but I would be no, my parent, my parents, I grew up in Toronto would get the Toronto Star and I would, you know, every morning, open and up during the baseball season and look at the box scores and just be like devouring stats around baseball. And so I think as a pollster, I started in politics and an interest in politics. And, you know, a lot of what I do, looking at the political world, is basically the box scores for politics, you know, who's up who's down how Canadians feel about those political leaders. But that expanded beyond that, over the last 20 years, and I've come to just be someone who's just really interested in and curious about why people do what they do. Why do they think what they think? And I have this amazing job where I get to ask 1000s of Canadians hundreds of questions every week, from anything from politics, all the way to how they feel about work, how they make decisions, on, you know, where they eat out for dinner to stupid stuff that, you know, feels a little fluffy and not that important around, you know, what are they going to do on Valentine's Day? And that, I think, is what keeps me motivated. The optimist in me, I don't know where that comes from. I don't know if it's part genetic art, just, you know, outlook. But I'm always somebody that sometimes drives my team crazy, who will take a situation that's not always positive and say, okay, but what's the upside? And how do we? How do we get over that? And I think as somebody who is, especially over the last number of years, who has been kind of seeing people's reaction to the world around them in a very negative way, I think you almost have to be an optimist to be able to do that. Because it's been a really tough time. And most people's responses to questions these days are negative when it comes to pretty much everything that's going on in the world.   Trevor Freeman  06:15 That transition, I guess, or that following from politics to other issues. I'm curious how that is guided for you and for your organization? Do you follow where the conversations are going? Or do you have a bit of a strategy of, you know, we want to, we want to test this theory, or we want to test this hypothesis, talk us through how you decide what information you're going after?   David Coletto  06:36 I think we're always interested in just helping our clients. Anyone who is consuming our content was interested in why the world works, the way it does, is providing some insight into it. Right? Again, I think we have this, this really unique opportunity as a market research company to tell Canadians what other Canadians are thinking. And I think by understanding each other, I believe, we can find a way to get to whatever goal we want. For some, it's about putting yourself like research puts yourself into other people's shoes for a moment and understanding the world from their perspective, the perceptions that they have, which I think are so important to understanding why they do or think anything else. And being able to pinpoint the thing, or the perspective that comes to shape how other people see things. And so that's what I'm really fascinated by, like digging deeper, and trying to get at the why is the most fascinating and interesting part of my job. And the polls, you know, we always say we started, I started my career, looking at things from a political angle. But politics is only a very tiny portion of the things that we do. And I always like to remind, you know, every audience, whether it's a CEO, who is much more focused on like their profit and loss sheets and try to increase the revenue to the political leaders that I have the privilege of talking to, from time to time, is that every person, I think has three cells, they're at once a consumer, they're at once, especially if they're in the in the labor market, a worker but even if they're retired, or haven't yet entered that labor market, what the work that they did, is still important to who they are, or the work they want to do is important to who they are. And then lastly, they're also voters, or they can be voters. And so those three are interconnected. And that's why I think it's really valuable to see them as those three things and understanding how their views on politics informs the choices they make as consumers and and then how they are able to behave as consumers may also influence the choices they make for where they work, or the demand they have from their workplace, and and the political world as well.   Trevor Freeman  08:59 Yeah, totally. I think that's a great lens to put on things not just for you in the kind of let's call it data business, not for those in the sort of political business or political world, if you will, you know, we think about that and the energy side of things, obviously, our lens is through energy and how what people are doing with it and using it and the decisions are making, but that's not how people look at the decisions in their lives. They don't look at it through that lens. So being able to step outside your bubble, as I kind of mentioned, is really helpful and I think could help all of us no matter the sector we're in so great way to frame that.   David Coletto  09:33 Yeah, and I'm often that like, spark or stimulus that like a leader would bring in to a team and say, okay, David, give us the broad perspective on things because so often, when you like Trevor get to spend most of your time thinking about energy and, and and the policy and how do you deliver it and then all the shifts that might be happening, you're very much an expert, and you develop an expertise, but I am not really an expert. Hi kind of a mini expert on everything, but also bring this really broad perspective that I can, I can tie things together to say the other reason why people are resistant to buying, for example, if I'm an electric vehicle, it's not because they're fundamentally opposed to an energy transition, it's because they're just worried that they're not gonna able to charge it. So if the infrastructure is not there, how do we expect them to be comfortable doing that, or, you know, if you're talking to Albertans, who are the most resistant to moving away from oil and gas and embracing kind of an electrification of the world fundamental because most of their livelihoods are based on an industry that requires extracting oil from the ground and processing it? So when you start to understand the why, like, why do people get to these perspectives, or ultimately, their behaviors, it's often tied to something a little bit deeper. And that gives you, I think, a way to then figure out how to talk to them? How do you persuade them? And how do you most importantly, I think, relate to them? Totally.   Trevor Freeman  10:55 So on that note, you know, data, what you guys are doing, it's useful for decision making, it's useful for informing policy. I guess what I'm trying to ask is, where's that line between pushing a narrative versus understanding what narrative is out there? You know, obviously, you're hired to go get data to help inform different organizations or political entities making their decisions? Is there a line there between getting data and pushing data or pushing a narrative?   David Coletto  11:26 Yeah, I'm often, you know, either often criticized, if anything, because people believe that the polls that we put out in the public domain, for example, are actually influencing public opinion itself. And the evidence of that is minimal. I mean, I don't think there's millions of Canadians who could name abacus data? Or know what the heck we do? Or, or, or have you ever read one of our polls, but I don't, you know, deny that that research at any level of an organization or in the broader kind of conversation we have about society doesn't have an influence. And so when I say like, my vision for abacus is to be the most sought after influential polling firm in Canada. And what I mean by influential is not that we are at ourselves, influencing the direction of policy, but that we're that the quality of our research, and the insights we derive from that research, influences decisions in a positive way. Like, my fundamental goal is to help leaders make better decisions. And I think if your decisions are data driven, if they're evidence based, if they're rooted in understanding your audience, then you can make better, more confident decisions. And so that's what I mean, when I'd say I want to be influential, I don't care. You know, if everybody in the entire country knows who I am, and they want to hear what I have to say, my opinion matters very little. Now, my opinion about what I think the research I do matters, I think is useful. And every researcher brings a unique perspective to the research they do. And I like, I admit, I've got biases, I view the world a certain way. I'm an optimist. And so I'm constantly trying to find the upside of a lot of the stuff that we look at. But I don't believe that, you know, for research to be effective, it's not just, you know, let's go do a bunch of research and write it down on a piece of paper, and it was handed out. I think, and I think where Abacus has been really successful, is that being seen as an effective communicator of what that research means? And helping organizations leaders that whoever action it, do something with it that helps achieve their goals?   Trevor Freeman  13:43 Yeah, that makes a lot of sense. Okay, so obviously, one of the reasons I want you on here is to talk about energy, climate change, decarbonisation, et cetera. Before we dive too deep into some of the specific research you've done, let's talk kind of high level about some of the evolving trends that you may have seen over the last number of years when it comes to Canadians perspectives on those items, you know, help us understand where we've been going these last couple of years and where we are today?   David Coletto  14:12 Well, I think let's start with a step back and look at the broad kind of mindset that I think is important to understand then how people's views of these issues evolve over time. I think we have seen over the course of five years, a rapid shift in the mindset of the general public that has been informed and influenced by a whole ton of external events. Right. So pre pandemic, I think headed, you know, the end of 2019 going into 2020, the public in Canada, Ontario, and Ottawa was very much and I think I'm cautiously optimistic kind of friend, right? Things were okay. The economy was doing okay. Interest rates were very low relative to where they are today. And then the pandemic happened and you had this immediate flip in the mindset to one where most people at least in those first four months of the pandemic, the mindset was fear, didn't know what this meant, we were told to stay home, we didn't know how bad it was going to get, or whether we were gonna get infected, and what it meant for our family, our jobs, you name it. Soon after that, though, I think it became clear that okay, we can control it, we know a little bit more about this virus. And we entered into a kind of a roller coaster of fear and relief, fear and relief, as those case numbers went up and down. Coming out of the pandemic, though, and I think the defining mindset up today, which is really important to understand, to then understand why people will be resistant to certain public policy choices on climate or may not be ready to fully embrace the transition is that most Canadians right now, and I say most, I mean, like 80 to 90% of them, I believe, have a mindset that's very much tied to scarcity. And that is, that is a real shift. And what that means is that a lot of the things that people have come to expect that they can get in their lives are either more expensive, or harder to find or get, or they fear losing what they already have. And those are often tied to issues like housing, the general cost of living and health care. And so that mindset then causes us to view public policy decisions, broader economic forces, and our day to day lives through a very different lens than one where I described as there's plenty of everything, right. And having a good mindset means I can take risks, I can perhaps pay a little bit more, even if the perception is that I pay more, even if it's not true, in order to achieve other kinds of goals. But when I'm the perception of struggling everyday just to get the kind of life I want, or the one in three Canadians who feel like they've completely fallen behind, that is going to make it much harder for me to be persuaded to do things that feel like a big change or feel like they're going to disrupt my life more than it already is. Now, if we expand that, and then we say, okay, so how do we overlay that onto views around the broader issues around climate change, energy transition? I think what's clear in the long term trends is the vast majority, 90 plus percent of Canadians believe climate change is real and is caused by human behavior. overwhelming majorities believe that we, that's actually a crisis that we have to do something about. And in the shorter term, the last I would say, 12 to 18 months as a result of you and me, Trevor, I don't know about you I grew up in, you know, in Ontario, I never once in my entire life, stepped out on a June morning, and saw smoky skies, and you know, take my dog for a walk and bring her home and she smells like smoke. That was never part of my experience. My wife grew up in Alberta, much more likely to happen in Western Canada over time. So I think there's also become a realization that's firmed up that if we don't do something about this, that it's going to have not just theoretical consequences for the earth, but actual implications for my life, I won't be able to do certain things, my health might be compromised, the value of my property might be at risk, I may not be able to ensure, and so that I think has created far more desire or demand to see action. But what's muted it, at least in the short term, is that scarcity mindset where people have basically said, including young people, which is the most fascinating thing is, people often assume younger Canadians are more likely to, you know, say climate change is a priority for the first time in probably ever that I've tracked this, we now have younger Canadians, if you're under 30, you're the least likely to say climate change is one of your top three priorities. Interesting. And that's because other issues, like housing, like economic security, like the cost of living, have overtaken them. And so short term fear of short term scarcity, as at least for now push down fears about the longer term scarcity that climate change will create.   Trevor Freeman  19:07 As we see more of these, in a really defining event, it's interesting, you bring up you know, walking out your door and seeing that weird yellow hue of smoke that we've never experienced before. As we see more of these defining events, does that override that short term, kind of, I don't want to say short term thinking as a pejorative sense, but like override that, you know, looking to tomorrow and remind us that like there's something bigger here happening.   David Coletto  19:34 I think they could. I think every instance of it and you know, what's unfortunate, is that these events, whether they're wildfires or floods or other extreme weather events are now common. And they're happening everywhere and across the country. So from a purely like 'what's going to motivate and mobilize people to change their behavior and demand' action? Yeah, that's there's no doubt those are going to be a stimulant on that kind of behavior and action. But I still, unfortunately, or maybe fortunately, depending on what you're asking about, or how you're framing it. These moments are not severe enough that they're, you know, that's not like the pandemic, which affected everybody, could affect everybody and forced us to all change everything about our lives. I don't think climate change has reached anywhere near that moment yet. And the other thing about it, and this is a defining feature of Canada right now, is that it's a politically divisive issue. There's no issue in Canada that divides the political spectrum, if you're on the conservative side, or the Liberals, the NDP side, is the issue of climate change. And it's not to say conservatives don't believe it's happening or don't fundamentally care about it. They're just not, they're just far, far less likely to put it as a priority. And so there's no consensus on what we do about it, what's the best policy choices, and how fast we need to go? And, and so we're still arguing about these things, which means, as a typical average person watching all of this happen, if the people in charge of making these decisions can't agree, well, then maybe it's not time for me to kind of line up and and do something about it, which I think is what part of the problem right now.   Trevor Freeman  21:23 Yeah, I think it's that divide between the number of people a percentage of the population that really firmly believes and sees this as a problem, like you said, and really knows we need to do something about it, compared to the various amps, which are probably evenly split on what that is, what do we do? It's hard to create policy, and it's hard to create ways forward, when we can agree on what we want to do. Something that I found really interesting, and this is going back a bit, I'm curious, in light of what we were just talking about, whether you see this as changed as there is this overwhelming idea that Canadians want to be seen as environmentally conscious, we want to be seen as leaders in that sustainability, renewable energy field. And I'm thinking about the findings you published back in 2020. So three and a half years ago, now, just the early days of the pandemic. And, you know, I can relate to the idea of Canadians wanting to be seen as virtuous leaders, I was, you know, fresh out of university and traveling the world and you want to put that shiny Canadian image forward. Tell us about that idea of how we want to be seen as, as the leaders and doing the right thing. Where does that come from? What drives that in, in our kind of national ethos? Or am I pulling something that's not there?   David Coletto  22:45 Yeah, no, I think it is there. And I think every country, by the way, there's a nationalism, a pride that, whether you were, you know, like, if you and I asked questions like that, in the UK, you know, Brits will want the UK to be seen as progressive on environmental issues are at least, you know, not seen as like, deeply polluting. And I think, part of the psyche of Canadians and I would say Canadians outside of Alberta and Saskatchewan, because I think those two provinces because of their reliance, and how important the oil and gas sector is, to those economies view this issue differently than, say, folks in Ontario, or Quebec, in particular, is that, you know, Canadians often have this like sense of superiority, certainly, compared to our American friends sound South totally. And the environment is one of those issues that we think we are better, or we should be better. And I shouldn't say we are better, but we believe we should be better. And I like that aspiration. Like, I think there's that desire for us, broadly speaking, to do our part, to be seen as leaders on this issue. But, I mean, I think there's limits to that perspective on then, okay, but are we all looking to, you know, change our behavior or, you know, adopt, you know, get rid of our furnace and put in a heat pump or, you know, change our gas powered vehicles to either a hybrid or an EV? No, we know, that's not happening as fast as it could happen. And so, it's one thing to believe it and want it and it's another thing to do it yourself. That being said, I do think from a public policy perspective, that we do want our leaders to be aspirational to, and to be, you know, looking to, to move the needle. But I think this is where your question about life was three and a half years ago, different from today, three and a half years ago, we didn't have the same mindset. So today if I ask people, What would you rather focus, reducing the cost of living making it easier for people to live their life day to day or relentlessly focusing on reducing emissions and moving to cars? I would say maybe two thirds would say, make my life easier first. And then I can get to the other thing. And so I think the more recent times have probably shifted that perception to some extent, but still want us to be leaders. But you know, they will want policymakers to coerce us into changing our behaviors.   Trevor Freeman  25:18 For sure. So with that in mind, with that context, moving a little bit forward in time, you're a little closer to today. Just last fall, September, you released findings that talked about Canadians' interest in energy efficient housing. So let's get a little bit more granular here. Talk about what Canadians feel about their own homes and what they're looking for.   David Coletto  25:40 Yeah, it was really my colleague, Edie Shepherd who did this research. And we were really interested in understanding particularly given all the conversations about housing affordability and the housing crisis. And you know, that some see as a real opportunity for us, as we build millions of new homes over the next number of years, we should probably be focused on making sure that they're as efficient as they can and, and, and help us tackle our need to reduce emissions and the climate crisis. And I would say that most Canadians 60% say that it's important that the home that they buy next is energy efficient. Very few say it's not important, there's a degree of difference, there's probably some we're gonna be like, I want to make sure it is and there'll be some that will likely say I wish it was but maybe if it costs me a few, you know, 10 grand more, I may not be able to afford it, but my intention is to see that it's there. And what's really interesting is when we asked people okay, you know, why would you want it? What are the upsides? Well, there is a perception that a more efficient owner will save the money. There is a broad understanding that it's going to future proof their home from future increases in the cost of energy. And there's the moral imperative that they think it's important to do it so that we can reduce our impact. Now, what are the barriers while they're the same? It's almost like the upside is the affordability. But the barrier is also affordability half who say, Okay, well, what would prevent you from doing it? Say, well, the upfront cost, the perception of the upfront cost is a big barrier to it. The fear that it may require more maintenance, like if you're putting solar panels on your roof, what does that mean? Do I have to maintain it? Is that going to be more costly? And then there's also a concern about just the availability of the actual energy efficient homes in the places that they live. So what it signals, though, to us is there's an intent, I think that almost everybody understands that it would be better if we all could live in a more energy efficient home. But there's these trade offs, these pushes and poles that I think are completely rational and natural for people to have, but are based on a lot of perceptions that may not be actually rooted into reality.   Trevor Freeman  28:03 Yeah. And it's great, great insight. I wonder, how do we take that? Or what impact does that have on decision making about future policy? And so I'm specifically thinking about, like the caning government's greener homes grant, which was a program to provide people with no interest loans, and in some cases, incentives to upgrade their home with clean technology, let's call it that which is oversubscribed, and they ran out of money. Does this inform policy of what comes next? Is it Is there something in there about helping people connect the dots between we'll lower that upfront cost for you, we'll have a program to lower the upfront cost, you get all those same benefits that you care about the affordability side that, you know, moral side of things to talk to us a little bit about how we connect the dots there.   David Coletto  28:52 Well I mean, the fact that was oversubscribed, as a proof that there's demand out there. That people are willing to do these things, if you lower the barriers to allow them to do it. And the cost is a big one. So and that's normal, and it's good public policy to try to incentivize the behavior you want to see and disincentivize the behavior you don't. So like, my advice to policymakers is, if you think this is important, and I'm no expert on what we have to do to achieve our emission targets and to get this issue under control. But home retrofits and increasing the efficiency of our homes, which I believe in what I've read is a big contributor. Right? Both commercial and residential properties are a big contributor to emissions, so if the incentive isn't an effective and efficient way of doing it, then we should continue to do it because it's clear people will do it. We also see for example, if I just take away from housing and residential energy use, and then I just use EVs as another example. And while there's some debate right now over whether EV demand is going to continue. But there's no doubt that provinces that have been more generous with their rebates for people who buy an electric vehicle, have seen a higher uptake in EVs go back to NBC, outright lead the country. And it's not like it's warmer in Quebec than it is in Ontario. There's a policy decision and choice that was made that has changed people's behavior. So I think we, you know, we, especially at a time when people are feeling that pinch and that squeeze, there's, there's benefit. Now, the problem also is, and this is bringing it back to the public policy lens a little bit as governments have been spending a ton of money. And so there's increased pressure on them to reduce their spending and try to manage their budget a little bit better. But, you know, priorities, I guess I'll say, and for many climate changes should be the, if not the most important thing, at least near the top.   Trevor Freeman  30:58 Yeah, and I guess, I mean, part of, we're kind of going back and forth between talking about climate change in the context of everything, and then, you know, dialing into specific things. If you focus in with people on, you know, within this issue of climate change, what's your barrier to getting a heat pump or an EV? And that affordability might be the upfront cost. But then if you zoom out and look at the more macro lens, you know, should the government be spending money on that, in particular, is that the most important thing for the government to spend money on? Maybe the answer changes, maybe, because then you're looking at it in the context of all those other issues that are also important to people.   David Coletto  31:34 Yeah. And just to drill down even further, in that study we did in September, we asked people in Canada, how interested they would be, and a very specific set of changes they could make to their home. Right things like, you know, high levels of insulation, to LED lighting, to even a geothermal heat pump, which I suspect most people don't really understand the science behind, or know how that would even work. But what we learned is that the vast majority of Canadians are at least open minded about making these changes to their home. So they're not like there's no like, deep, except for a small segment of the population's deep ideological or emotional negativity towards a sustainable behavior. It's just how do you get people over the barriers that exist? In them actually doing it. And cost is one simple understanding, accessibility of the service. And obviously, you know, an organization like hydro Ottawa has a role to play, and you do a big, important role in helping you know, consumers in the city. Think about their energy consumption as you try to help us conserve and be more energy efficient.   Trevor Freeman  32:45 Yeah, for sure, I kind of want to pull on that thread a little bit. So as you noted, like, you know, an organization like Hydro Ottawa, we're kind of on the front lines with our customers, we have that one to one relationship with them. Sometimes all that is just a bill in the mail, but they know that we are involved in energy. And, and we take it upon ourselves, we think it's important to help our customers understand energy, help them understand that, you know, part of the sector. We're going about that, and as we're talking about, especially the energy transition, what does your data mean? What can we learn from that in terms of how we engage and in the messages we bring to our customers? And I'm asking specifically thinking about an article you shared, just last week, which talked about whether carbon pricing as a policy is suffering from a failure to properly communicate. So, you know, that's kind of two pieces there, the Hydro Ottawa piece, as well as that, you know, maybe weaving all together for us.   David Coletto  33:47 Yeah, I mean, I could spend an hour talking to you about, you know, public understanding of, you know, science and climate change and carbon pricing, but the short version is, you have to assume that most people have little understanding of how things work. And I often use the analogy of, of a car and let's use an EV because that's on brand for this conversation, but like most people would know how to drive that EV but they have no understanding of how the energy is produced from the battery and it works to like turn the pistons I don't even know if there's distance in an EV. Right, there's probably not there's not that combustion engine, whatever. I don't need to know that. I just need to know how to drive it. Yeah. And so I think that the lesson there is, and the carbon tax or price is a good example of that. I don't believe that the federal government ever did the work it needed to do to explain to people why. And sometimes it's shocking how little people even understand basic principles like supply and demand that if you raise the price of something, people are going to be disincentivized from buying it or you doing that activity because it costs more. In the case of, you know, carbon price, that's the whole incentive activity that produces emissions, we want to make it more expensive, so people do less of it. But I've done focus groups, you know, years ago. But I don't think there's been a renaissance and understanding where people didn't basically understand why we raised the price of, of carbon or an emission like that. But then you've complicated it by giving that money back, which I think is a good goal, because it's really you're trying to signal a price and trying to get those who consume a lot of energy that produces emissions to reduce that as much as they can. That even in our research, most people who received a rebate, didn't know why they received it. And then when we asked them, okay, well, if this program was eliminated, and keep in mind, the fact is, most Canadians do receive at least close to or as much rebate as they would likely spend from the tax or the price. They thought they would still be better off if that just disappeared. Which tells me that that communication, and not assuming that people, you know, all watch the news or spend a lot of their own time actively looking at information. And even if they are, they may not get good information, because there's so much misinformation out there, that organizations actually have to spend a lot more time explaining and communicating. And look, I think one of the simplest and best things that Hydro Ottawa does as a consumer, as a customer of Hydro Ottawa is like when I can log on online, and you're giving me some insight into what is consuming the energy in my home, right? Like, you're like, you likely use your, you know, washing machine and your dishwasher. And, and that allows me at least to understand the implication of that choice. And if I want to reduce my energy consumption, I suspect most people want to do it because I just want to save money, then you're giving me the power through information to do it. So I think there's a lot of value in communication and just public education. It's really hard for me to say, but I think it is proven to be essential in getting people to change behaviors, away from things they've done for most of their lives.   Trevor Freeman  37:21 Yeah, it's great insight, it's something that we are constantly thinking of is, how do we relate this thing that's important and that everybody would agree is important to people's day to day lives, because they don't spend all the time thinking about it, they've got other things on their mind, other things that are important to focus on. So great insight. I want to zoom out one more time quickly here and talk about, you know, data that you published in 2022, about our energy system as a whole. So the federal government has said by 2035, all electricity production in Canada should be emissions free, on the whole Canadians completely agree. So you have data that says eight and 10 80% of Canadians believe a clean energy system would be more affordable and more secure than a fossil fuel system. I was pleasantly surprised to see that. I'll be honest. Tell us a little bit about that. And what else did you find in that study?   David Coletto  38:17 Well, I think this comes off of obviously, the invasion of Ukraine from Russia, which raised a lot of discussion, not just about the affordability of energy, because of how that conflict, you know, spiked natural gas prices and really hit Europe hard. But also a sense of energy or energy security. And so we wanted to understand, do people recognize and understand the risks actually involved, and the opportunities not just from a purely climate lens, but from an affordability security lens? And this is a really important conversation? Because I think it recognizes that not all people come at an issue with the same perspective, right? If you're somebody who doesn't believe that climate change is an absolute priority, well, then you've got to find another way to get them to behave or change their behavior, or at least agree on an outcome that might be for a different reason, but gets us to the same outcome either way. And I think what we learned from this research is that when you ask people, for example, you know, which do you think is more affordable, a clean energy system that would include hydro, wind, solar power and electric vehicles, or a fossil fuel energy system? So think oil, natural gas, coal, gas powered cars. Two of three, say I think that a clean energy system is going to be more affordable and an almost same number 68% Say, I also think it's going to be more secure. And now, that's not a consensus. I think it's getting close to one. There's still a third of people who say no, no, I think kind of those, those legacy fossil fuel driven systems are both more secure and more affordable. But I wish we had asked this question, you know, 10 years ago, but I suspect if I had, you would have probably seen a complete reversal. Right? Yeah, it would have been the opposite. And so we have seen, I think a change in people's perspective and global events have pushed us there. It just tells me that at this base level of people's understanding and belief that they think if we do everything right, these things will be better for me, and better for our country and better for the world. And that we just need to now deliver and execute on that, I think, as both policy and in the day to the lives that people are experiencing.   Trevor Freeman  40:38 Uh huh. So thinking about the change in technology and the changing landscape, we've talked about how the energy system is changing. We've talked about the impact of the pandemic, and the fact that you and I are, you know, sitting having this conversation over video chat, which is not that common, even four or five years ago. How is that progression and technology, changing the way that you gather data and understand where Canadians are at is disrupting your industry? Like it is other industries?   David Coletto  41:10 Yeah, in every way. I am too young to remember the golden years of market research and survey research. But there was a time when you know, and everybody has a phone, but not everybody answers that phone, when you could call households. And most people, almost everybody would pick up the phone. And then of those who picked up the phone, at least half or so would answer your survey. Now, you know, everybody has a phone, but almost nobody picks it up if they don't know who's calling. And that's forced the industry to respond. How people communicate, and how they don't communicate is tied to how then we can reach them and collect information from them. And so what we've seen in market research is almost an entire shift towards online research. I'll spare you the detailed nerd conversation about how we do that. But I would say most 90% of the research Abacus does, for example, is done online in some way. Whether it's recruiting, you know, the general population, when we do a poll of Canadians through a number of different panels that have recruited people, from time to time take surveys, or whether we're doing employee studies, or customer studies, using lists through email, or text messaging. But what's important is, despite all that change, I think our industry has been pretty good at being able to continue to engage people, response rates dropped, it's like people don't want to share their opinions as much as they used to. So that's a problem for us. And the most important thing as a researcher is to ensure that those who can take part in research are not fundamentally different from those who don't. And I don't think we're there yet. But it's something that- if there's anything that keeps me up at night about research, is that right? Is there going to be a moment when you know, Trevor, I don't know if you answer surveys when you're called or whatever. But if you do, and everybody who does shares the same kind of perspectives, socio economic backgrounds, demographics, and the people who don't answer surveys are completely different. And all those, then the surveys won't be representative, they won't represent the populations we're looking to understand. So yeah, technological change is changing everything. And the big, big thing I've been thinking about is what role does AI play in the market research industry? I think there's going to be a lot of benefits in terms of being able to synthesize large amounts of data, you know, being more efficient. But the impact that it has on how we collect information, I don't think is fully understood yet.   Trevor Freeman  43:42 Anything that's really surprised you and in your research, anything that's really jumped out that you've said, holy smokes, that's not what I expected.   David Coletto  43:49 I think it's - not really I am never I'm rarely surprised these days, because I'm, I'm so inundated and constantly kind of looking at data that you almost you're almost anticipate where things are going before they get there, though, what's interesting to me is that people aren't dumb. And then that's not to say that's surprising. Oh, my God, people aren't dumb. But I think sometimes there's an assumption that, you know, most people - I'm not saying most people are dumb, but they aren't paying attention. And there's a lot of people who don't pay attention to a lot of things. But I do think that most people are thinking about how they reconcile all of the things that are going on in the world and in their life. And I think climate change is now part of the conversation that's regularly there. And that to me is going to make it easier for us to achieve that thing you just said right, that that's the first step in getting people to change their behaviors and to embrace change is for them to recognize that a problem exists. And so step one has been there for a while. And I think that's going to accelerate step two, so I didn't answer your question. She does. I am rarely surprised by her about pretty much anything these days. But I am pleasantly surprised by how thoughtful some most people can be about things if you give them the chance to be.   Trevor Freeman  45:20 Yeah, I totally agree. And I think that's, I guess, aspirationally I like to think, you know, in my part of Hydro Ottawa, and what we do in engaging with customers, it's keeping that in mind and remembering we are trying to understand things in our customers lens, what matters to them. And like I said earlier. You know, my head is in this it's in, it's going through the lens of energy all the time. And that's not the case for everybody. So keeping in mind that yeah, people are diligent and paying attention and thinking about things that are important to them. And that just may be slightly different from the rest of us. So to kind of wrap it up here, we typically end with a series of questions that we asked most of our guests. So I'm going to fire the match here and see what you think. You're on the receiving end now of data gathering, I guess you can say. What's a book that you've read that you think everybody should read?   David Coletto  46:16 Oh, man, I read like eight books at once. And so remembering what I'm reading? Oh, that's a tough question for me.   Trevor Freeman  46:26 But what's a book that you've read in the last month that you think everyone should read down? I'll narrow it down for you?   David Coletto  46:31 I think, okay, it's not in the last month. I'll start by answering that, okay. So a book that I think helps explain so much of the world right now is called Prius or Pickup. It's by two American political scientists. But it's not like a nerdy academic thick book. And it basically argues that there are two primary worldviews, but they are fixed and fluid, and that so much of the political division in the United States, but so much of the consumer behavior we see, is affected by that worldview. So Prius and Pickup are like the choice between vehicles. And it changed my thinking around persuasion about communication, because it basically argues that most people, and I think it's true in Canada as it is in the US, or anywhere else around the world, start a journey with a particular base assumption about the world. And if you understand those assumptions, you then understand how to persuade them.   Trevor Freeman  47:36 Very cool. Is there a movie or a show that you've watched recently that you would recommend everyone take a look at?   David Coletto  47:43 Hmm well, I love Succession. It's been a while since it ended, but if you haven't seen it, it's brilliant TV. It makes you mad. You hate all the characters, but there's something really compelling about the writing. I really love that. And then my guilty pleasure is Curb Your Enthusiasm, which and it's in its final season right now, as we record this.   Trevor Freeman  48:09 Awesome. I can't agree more with both of those. If someone offered you a free round trip, anywhere in the world, where would you go?   David Coletto  48:18 I am a cyclist. And I usually travel with my bike. Road cyclist. So anywhere in the world, I would say, you know, I think because I have never been I would love to go to places like New Zealand or Australia and explore on two wheels, either of those places. And yeah, that's where I go.   Trevor Freeman  48:40 Cool. Who's someone that you admire?   David Coletto  48:43 Oh, man. Good question. Dude, why admire? So many? It's like, what do I -  how do I frame this? These are hard questions. If you know what, recently I had someone who's like, actively involved in politics, in terms of like, public opinion, and being part of that conversation. I increasingly admire anybody, anybody, and I'm not going to pay any political support like partisan brushes or political parties, anyone who puts their name forward to run for political office these days. I admire that because it is a thankless and difficult job. And whether it's our Mayor or Premier or Prime Minister, you can disagree on the decisions they're making, you can dislike them as people if you want. But yeah, I think we should admire the fact that they have chosen to do something that is a pretty horrible job.   Trevor Freeman  49:38 Yeah, well said. And finally, is there anything kind of about the energy sector, its future that you're particularly excited about, or really keenly interested in?   David Coletto  49:50 I am an eternal optimist about human ingenuity. I'm not somebody who thinks like the end is coming and it's all going to go to hell. I actually think that we will find, and we have probably found the solutions that are going to help solve this problem. And so what excites me the most I think is, you know, I am excited for the day. I really am when I step on an airplane that is entirely powered by a non emitting fuel of some sort. I don't know when that's going to be, I don't know how long it's going to take. But I think if we achieve that, then I think we will have solved a lot of the other things and I I don't think it's that far away.   Trevor Freeman  50:29 I mean, as your bio says, infinitely curious, passionate and eternally optimistic. I think that that sums it up pretty well. David Colletto, this has been a fantastic conversation. I really appreciate you coming on.  I really appreciate the conversation too, Trevor. Thanks for having me. Thanks. Take care. Thanks for tuning in to another episode of the thinkenergy podcast. Don't forget to subscribe wherever you listen to podcasts, and it would be great if you could leave us a review. It really helps us spread the word. As always, we would love to hear from you. Whether it's feedback, comments or an idea for a show or guests. You can always reach us at thinkenergy@hydroottawa.com  

The energy transition will define the sector for decades. And smart, passionate people are needed across the industry—leaders and innovative thinkers to chart the path forward. In his first episode hosting thinkenergy, Trevor Freeman gives the future workforce a voice, chatting with two engineering interns about what a career in energy means to them. Listen in as Alana Jones from Envari Energy Solutions and Priscilla Lacerda from Hydro Ottawa share their experiences. Related links   Hydro Ottawa: https://hydroottawa.com/en Envari Energy Solutions: https://envari.com/  Trevor Freeman on LinkedIn: https://www.linkedin.com/in/trevor-freeman-p-eng-cem-leed-ap-8b612114/  Alana Jones on LinkedIn: n/a Priscilla Lacerda on LinkedIn: https://www.linkedin.com/in/priscillalacerda/  To subscribe using Apple Podcasts:  https://podcasts.apple.com/us/podcast/thinkenergy/id1465129405   To subscribe using Spotify: https://open.spotify.com/show/7wFz7rdR8Gq3f2WOafjxpl   To subscribe on Libsyn: http://thinkenergy.libsyn.com/ --- Subscribe so you don't miss a video: YouTube   Follow along on Instagram   Stay in the know on Facebook   Keep up with the posts on X ----- Transcript: Trevor Freeman  00:07 Hi, welcome to thinkenergy podcast that dives into the fast changing world of energy through conversations with industry leaders, innovators and people on the frontlines of the energy transition. Join me, Trevor Freeman, as I explore the traditional, unconventional and even up and coming facets of the energy industry. If you've got thoughts, feedback or ideas for topics that we should cover, we'd love to hear from you. Please reach out to us at thinkenergy@ hydroottawa.com. Hi, everyone, this is Trevor Freeman here. This is my first official show without the training wheels. Just as a reminder, your regular host, Dan, is hanging up the lapel mic, actually, it's a big giant microphone - go bigger go home, I guess. And I'm stepping in to try and fill his shoes. The consistent thing though, is that the goal of the show continues to be to explore the fast changing world of energy through conversations with smart people doing cool things. Today on the show, we're going to talk about the energy workforce of the future. So this show is featured a number of conversations about the energy transition, which is arguably already underway. And this massive shift will really be the defining feature of this sector for at least the next couple of decades. Like any other massive project or societal change, in order to do it properly. We need great people. We need smart, passionate people in all areas of the sector to help us move forward into uncharted territory. A career in energy is really an exciting, dynamic pathway and a great way to contribute to meaningful change. But obviously, I'm a little biased, so I wanted to talk to two people who are earlier in their journey. It's great timing for this conversation because March is both National Engineering Month here in Canada, and we've just celebrated International Women's Day. Joining me today are two smart, young engineering interns working in the energy space. Alana Jones has had a number of roles with Hydro Ottawa, and currently works for Envari Energy Solutions, a Hydro Ottawa affiliate. Priscilla Lacerda joined Hydro Ottawa as an intern last year, Alana and Priscilla, welcome to the show.   Alana Jones  02:10 Hi, Trevor. Thanks for having us.   Priscilla Lacerda  02:12 Hi, Trevor. Thank you.   Trevor Freeman  02:14 Alright, let's get started by learning a little bit about you both. Priscilla, why don't we start with you? Could you tell us a little bit about where you went to school and what you studied and really how you ended up working in the energy sector?   Priscilla Lacerda  02:25 Sure. So I'm originally from Brazil and completed my studies there. I have a Bachelor in Electrical Engineering and an MBA Diploma in Business Management. While I was at the university, I tended to work in an affiliated company and spent around six and a half years there. Eventually, I decided to immigrate to Canada. And because I used to work in energy fields in my home country, I researched a lot about Hydro Ottawa and ended up being selected to work as an engineering intern last year.   Trevor Freeman  02:54 That's great. Well, I'm glad that we got you to join us from Brazil. And I think your experience in you know, both in Brazil's energy sector as well as here in Canada is going to be really beneficial both for you and for us. Alana, maybe the same question for you. Tell us a little bit about how you got started in the energy sector.   Alana Jones  03:12 Yeah, so I studied chemical engineering. I come from a large mining community. And that was the initial plan to work as a metallurgical engineer. However, once I graduated, I was a young 20 year old looking for a more exciting city than Sudbury Ontario had to offer. So I relocated to Ottawa. My brother was here, and I've always loved this city. I realized pretty quickly, however, that it was a lot harder to find a role in chemical engineering than it was in Sudbury. So I started working in restaurants and pubs to pay the bills. Plus, it was fun, the money was great. But fast forward five years, and I knew that I needed to actually use my degree and find a career. So I really liked Ottawa, I knew I wanted to stay here. I just didn't really know how to make that happen. So I contemplated Teachers College. And then one day on the radio, I heard about an exciting opportunity. It was a program that Algonquin College was running to get more women into the trades. They were calling on women with engineering science or math degrees to take their fast tracked electrical engineering technologists program. So the perks were wonderful. They offered free laptops, work boots, and what I found most appealing was an opportunity for a Co-Op with a local utility. So I ended up doing my four month Co-Op with Hydro One. And it was a great way to break into the industry and actually see the utility business and how it was run. And that same year I graduated from the program at Algonquin I got hired on as any it with Hydro Ottawa, so I feel like everything just worked out really well.   Trevor Freeman  04:41 Awesome. It's great to hear about the different kinds of unique pathways that people take to get to where they are on them. That's not unique to the energy sector but still interesting to hear. So let's dive a little bit deeper into what you guys do today. Alana will stick with you. Help us understand what it is you do in your role and you know, tie that back to how that relates to your engineering studies?   Alana Jones  05:02 Sure, my current role is with the Envari electrical team. My main focus is electric vehicle infrastructure projects and energy studies for buildings. As you know, there's a massive push for electrification of vehicles. And the government has mandated that all vehicles sold as of 2035 will be electric. So we see huge numbers of people wanting to get a head start on having that infrastructure available to support their future EV needs. We work with government agencies, many car dealerships, condo, apartment buildings, airports, even companies looking to convert their full fleets over. So my role is to perform the initial assessment on a building to determine if they have enough electric capacity to install any EV chargers at all, and what their options are as far as installation size and what that would look like with respect to their building layout. Our team helps provide guidance on the type of charger and system that would be most suitable for their needs. And there really are so many options, whether it's fast charging, or rapid charging, or if they want to allow public use or private so you get into a whole list of options that clients often need guidance on. And sometimes we actually see that buildings don't have enough capacity to support their electric vehicle infrastructure needs. And as one example, if the transformers are too small to support additional power loads, in that case, we can recommend a service upgrade to get them where they need to be for future electrification. Sometimes, that means designing a surface upgrade before charger installation to ensure that the building will have enough power to support the needs. And that means sizing the service accurately as well to reflect the current and projected needs. So these are expensive upgrades we're talking about. And they should last decades to come. The last thing you want to do as an engineer is install something too small, to find out 10 years down the road that the building needs more power, or if you oversize a service, it ends up just costing much more than it needs to. And I guess the last part of my role is the actual implementation of these chargers. So once any service upgrade is done if it's needed, the group can begin managing the installation, so sourcing the chargers and electrical contractor to do the work. And a big part of my role is making sure all parties are kept in the loop and the project remains on time and budget so that it can be as simple as possible for the client.   Trevor Freeman  07:09 Great. Thanks for that. We'll come back to that in a minute. But Priscilla, over to you, kind of the same question. Tell us about what you do specifically and kind of how that relates to your engineering experience.   Priscilla Lacerda  07:21 Yeah, so basically, I prepare and maintain a portfolio of business performance measures for our electricity distribution division. Alongside my supervisor, we identify opportunities to improve internal and external processes, and also analyze financial data. As you are well aware of, as a utility, we are regulated by the Ontario Energy Board. So it's imperative to keep our processes and analysis well documented. And that's the importance of my role and department and how it relates to my engineering studies.   Trevor Freeman  07:51 Great. I mean, those are just two examples that you guys both gave about, you know, the number of different roles within the utility sector. And it's a, you know, a pretty wide range of things that have to happen in order for us to deliver the service that we do and make sure that we're providing value for our customers. So thanks for that. Maybe kind of a follow up question on that. Anything that surprised you so far in your role here at Hydro Ottawa, and Envari, for you, Alana.   Alana Jones  08:20 Um, I would say the most surprising thing I've found is that everyone really wants you to succeed. I've been really, really lucky in my various roles, having managers and supervisors with a ton of experience to be able to coach me and support me in whatever ways they can. Our group at Envari is so diverse in their knowledge and backgrounds. So they offer, each person offers a specific skill set that they're willing to share with everyone. And anytime I need help or support, there's always someone willing to take that time out of their own busy schedule to support me. And I really love that. I mean, sometimes we spend more time with our co-workers than our own families. So I think it's important to have a nice working environment and to feel supported. And I've been lucky enough to have had that experience throughout my career.   Trevor Freeman  09:02 Great. That's awesome to hear. Priscilla, what about you?   Priscilla Lacerda  09:04 To be honest with you, in my specific case, because most of my experience was in my home country, one surprise that I had was that here in Canada, each province regulates its electrical system separately, and has their own model. While in Brazil, all the utilities are nationally regulated by one energy board.   Trevor Freeman  09:22 Yeah, it's certainly a complex landscape that I think, you know, folks outside of the sector don't always appreciate and you know, they don't need to worry about that, because we worry about it, but it is a complex regulatory sector. So Priscilla will stay with you. I'd like to dive a little bit deeper into your role in what you do. You talked about your role in reporting on grid performance. So that's our outage and reliability reporting, as well as financial reporting related to grid operations. Tell us why that's important for a distribution company like Hydro Ottawa.   Priscilla Lacerda  09:55 As I mentioned before, Hydro Ottawa is regulated by the Ontario Energy Board, so it's crucial to maintain a reliable and cost effective grid. Our primary objective as a distribution company is with the customers. As we continually strive to improve performance for our customers, we need to maintain quality data to derive critical business insights and make informed business decisions.   Trevor Freeman  10:18 Great. So following up on that, do you see, you know, smart technology or AI or anything else coming in and, you know, changing the way that we report in the future?   Priscilla Lacerda  10:31 Yes, I see smart technologies and the blockchain is doing proof predictive analysis, and also anticipating potential issues and trends in the grid performance. Also, smart grids enable real time monitoring of various aspects of grid operations. And that's extremely beneficial as it will provide more up to date data.   Trevor Freeman  10:52 Great. Alana, we're gonna jump over to you here and kind of do the same thing, dig a little bit deeper into what your previous answer was. So you mentioned things like EV charging infrastructure for some of our customers that own large buildings. Are you seeing more of our customers look to what we might call, you know, emerging technologies to meet their own needs or the needs of their own customers or building occupants?   Alana Jones  11:15 Yeah, good question. We are seeing many, many people come to us to see what their options are for the implementation of EV chargers. If you are an EV driver looking to buy a condo in the city, having that infrastructure at home to charge is a must. And every year more and more people are driving EVs. So definitely, I would say building owners are looking to the future of electrification of vehicles and accommodating their building occupants. And we also see a huge push from dealerships to get chargers installed, whether they have requirements they need to meet, or whether they want to be the ones to get their hands on the latest EV models first. They are really interested in having that infrastructure already in place to accommodate current and future needs for it. There's also a goal, I think, not to be behind the eight ball when the time comes. And when everyone is rushing to get it done. So 2035 isn't that far away. And year after year, the increase in EV sales jumps, so getting your establishment ready for that, I think, is a must. And the last bit is funding. It's a huge early adoption incentive and government funding isn't going to be around forever. And as a company, we're able to secure a ton of funding for our clients. And it really drives down the cost of these easy installation projects.   Trevor Freeman  12:25 Geat. And you know, you can't really talk about EVs or electrification without you knowing, at least considering sustainability and climate goals. Do you find that your customers' goals when it comes to hitting a netzero target or just reducing emissions? Does that really impact the decisions they're making? And as a result, is that impacting your work?   Alana Jones  12:44 Yeah, absolutely. I believe the government mandate that all passenger vehicles being sold as of 2035, must be electric. And I think 20% by 2026, has had a huge impact on our clients, specifically dealerships. And some don't have any infrastructure in place at all, or even the capacity for the EV needs we're finding. So if service upgrades are required, that pushes the timeline of getting these EV chargers installed further and further away. We're also noticing municipalities looking to get fleets electrified, as well as looking to have larger service vehicles converted over to evey and everyone knows it's coming. And for some, it's been kept on the back burner. But like I said, 2035 really isn't that far away. So as a company, we are definitely growing to meet the demand of our customers. And so that's really a good sign of things moving in the right direction. And we know ultimately, it'll be better for the environment. Right? If all passenger vehicles and eventually working vehicles move to electric, that's not a secret. I think overcoming insecurities around electric vehicles is a big hurdle that many of us still have to get over. And I think that as battery technology improves, more affordable models are available. And the increase in public use chargers which we see happening rapidly, more and more people will get on board what I'll call the EV train.   Trevor Freeman  14:00 Right? Yeah, that's great to hear. Okay, I'm going to shift gears a little bit here. So both of you are closer to the beginning of your career. I'm curious about how your experience so far has influenced how you see your own future path within the energy industry or elsewhere. Priscilla, why don't we start with you.   Priscilla Lacerda  14:18 Well, my current experience gives me a holistic view of the company, as it deals with different departments, which makes me think about pursuing a management career in the future.   Trevor Freeman  14:29 And do you see that - like, so you're in the distribution, part of the business now and specifically focused on reporting? Is that kind of where you have your eye or are you looking at other parts of the business?   Priscilla Lacerda  14:41 Well, working with distribution has always been rewarding for me. So I'd say I would like to continue to work with this. What makes me most fulfilled about the role that I'm currently playing is being able to help other departments identify possibilities for improvement in existing or new processes.   Trevor Freeman  14:59 Great, Alana, what about you?   Alana Jones  15:02 Um, I believe it's a really exciting time to be an engineer working in the energy sector, there are new and emerging technologies. It's fast paced, and there is an abundance of work to be done. I'm just excited to be a part of it. Um, the industry isn't going anywhere. And like I said, it's growing rapidly. So having the experience to work alongside some really bright people on the bleeding edge of these technologies, is a really great opportunity. And hopefully, I'll have a career in this for years to come.   Trevor Freeman  15:30 Awesome. So I'm curious to hear from both of you. What do you think are some of the biggest challenges facing the energy industry right now? And Alana will let you kick that off?   Alana Jones  15:41 Yeah. I think one major challenge is having the infrastructure to support the electrification of buildings, homes, and all vehicles is a huge endeavor. And the grid needs to drastically increase in size and be ready to accommodate these future loads. And the pathway to net zero is a huge undertaking, and it will be challenging to achieve that, I believe. That's not to say it's not doable, but it's definitely a challenge and a massive investment. That being said, it's important to note that electrification changes are not happening all at once. Not everyone is switching to EV at the same time, or getting their buildings or homes all to net zero all at once. So I do believe that the Canadian grid is capable of growing gradually alongside those changes to be able to adapt.   Trevor Freeman  16:27 Great, Priscilla, what do you think?   Priscilla Lacerda  16:29 Well, one of the challenges the energy sector is facing right now is the urgency to meet the decarbonisation, and net zero targets. And this is driving significant electrification efforts across various sectors, as Alana just said, like transportation and construction, for example, because construction right now is changing, like the old heating and cooling gas systems for electric appliances. So being a key player in this scenario, Hydro Ottawa is working alongside partners, customers and suppliers to achieve our net zero goal for 2030. And also, we are committed to supporting our customers in their efforts to meet their own net zero targets amplifying our collective impact on sustainability.   Trevor Freeman  17:14 Yeah, great. I think you've both identified some pretty key challenges. And luckily, we've got great people like the two of you helping us get there. So I'm wondering if you guys have any advice that you would give to, you know, current students or people that are considering an engineering career or another career in the energy sector that you can pass on based on your experience? Priscilla, you can start us off.   Priscilla Lacerda  17:38 I would say seek opportunities, like internships or Co Op programs during your engineering studies. Because even though theoretical knowledge is essential. It's also important to know how to apply what you're learning in real life situations.   Trevor Freeman  17:54 Yeah, that's a great point, Alana, any great advice?   Alana Jones  17:57 Yeah, I agree, I would say absolutely get involved. It's a great opportunity to contribute to climate change solutions. I believe it's a stable industry with a ton of opportunities to learn about the latest and greatest technologies. As I mentioned before, I come from a mining community where it's not always stable. It's a very boom or bust industry. So when it's good, it's really good. But there are times the price of minerals drop and mines close, jobs are lost and communities become ghost towns. It's just not the same as it is in the energy sector. There is and will be for the foreseeable future and abundance of work and I believe in the need for skilled workers. So when choosing a path to take your career, I think the energy sector is one that I would highly recommend.   Trevor Freeman  18:40 Great, thanks for that. That's great to hear. Could you each talk about a misconception about the energy industry or your work that you think people might have that you'd like to, you know, let them know about?   Alana Jones  18:53 Sure. And a misconception around my work with electric vehicles and I see this a lot. I believe there's a lot of insecurities around EVs, so battery ranges, one especially in colder climates, like Ottawa. Battery technology, though, is constantly improving, and there are ways to mitigate the effects of the cold weather on your battery. Things like preconditioning your battery by turning it on, turning on the heat for even 10 minutes before driving. Some vehicles even offer a winter weather feature that helps keep the battery in an ideal temperature zone. Another aspect is that five years ago, the landscape looked much different when getting from point A to point B. Now public EV infrastructures are everywhere. When you look at the EV charging maps and cities. They're just covered and it's only getting better. The government just announced a $1.2 billion investment to build 84,000 chargers across the country by 2029. So it's likely you won't be able to go anywhere without seeing a charger. And I think as more and more chargers are put on the map people will be more accepting of the technology or realize that it's not going anywhere and realize that it is a huge opportunity for us individuals to reduce our carbon footprint. Lastly, I think it's difficult for people to commit to the initial investment into electric vehicles. I think for a lot of people, they see the price tag on an EV . And that prevents them from taking that leap, I guess. But initial investment and cost of ownership are two different things. My hope is that the government incentives continue, just to help the average Canadian consumer be able to afford an EV and make that initial shift, because studies show that operating costs are significantly lower than that of a gasoline fueled counterpart.   Trevor Freeman  20:32 Yeah, that's great. I think it's a really important kind of misconception to talk about. And I'm hopeful that we're starting to see a shift in that. And obviously, the, you know, great work that you guys are doing an inquiry is helping alleviate some of those concerns and challenges. Priscilla, what about you, what's a misconception that you want to address?   Priscilla Lacerda  20:51 So I would like to raise awareness to a common misconception that electrical engineering is only for men. I read on the internet that women represent less than 20% of the engineering professionals in Canada. And I think we need to encourage more women to be a part of the energy industry and let them know that they are capable of succeeding in this field.   Trevor Freeman  21:12 Yeah, that's a great one as well. And and I agree, having gone through kind of engineering school and obviously working in this industry, what I will say is, it's really refreshing and encouraging to have, you know, really smart, passionate people like the two of you, kind of coming up in our organizations and, you know, hopefully eventually taking on more and more roles and leadership roles. So great to have you guys here today and talk about it. So thanks very much for the conversation. So far, I really appreciate hearing more about your experiences, how you got to where you are and what you're kind of looking at moving forward. To wrap up our conversation, there's a bit of a tradition on the show to ask some rapid fire questions. For the regular listeners out there. Just be warned, I may have changed them up a little bit. So they might be a little bit different from what you're used to hearing. But it's fresh for the two of you. So why don't we dive right in you both ready for the rapid fire portion of the interview?   Alana Jones  22:10 Ready?   Priscilla Lacerda  22:11 Yes.   Trevor Freeman  22:12 Awesome. Okay, so we're gonna start with Alana. What is a book that you've read that you think everyone should read?   Alana Jones  22:20 1984 by George Orwell. Have a read if you have not already. You'll see its relevance throughout history and even present day and I find that very fascinating.   Trevor Freeman  22:31 Yeah, that's a good one. Priscilla, what about you?   Priscilla Lacerda  22:34 Well, for me, it's The Little Prince, because it seems like a simple story at first, but then it's actually very philosophical. And every time that I read, it makes me reflect a lot.   Trevor Freeman  22:45 Yeah, those are I mean, I'm not really supposed to provide commentary on the rapid fire part, but I'm going to anyway, those are both great answers. And great books like ones you can read over and over again and kind of get a little bit more out of it each time you read. So awesome answers to that. So same question, but for a movie or a show. What's a movie or a show that you think everyone should watch, Priscilla?   Priscilla Lacerda  23:08 So, a movie that I like very much is The Pursuit of Happiness, because it's about perseverance in adverse life situations.   Trevor Freeman  23:18 Great Alana. What about you?   Alana Jones  23:20 The Shawshank Redemption, I love a good comeback story.   Trevor Freeman  23:24 Nice, awesome. If somebody offered you a free round trip - just for the record, I'm not offering you a free round trip - But if somebody offered you a free round trip flight to anywhere in the world, where would you go? Alana?   Alana Jones  23:37 I would love to go relax in the south of France with some wine, the warm weather and tour around on a big old boat.   Trevor Freeman  23:46 Perfect Priscilla, what but you   Priscilla Lacerda  23:49 Scotland seems like a magical place to visit.   Trevor Freeman  23:53 Yeah, it sure was a great answer. Who is someone that you admire? Priscilla?   Priscilla Lacerda  23:59 So for me, it's my husband because he was truly brave to leave everything behind in our home country to emigrate with me.   Trevor Freeman  24:07 Yeah, that can't have been easy for either of you. Alana, what about you?   Alana Jones  24:11 I would also say my spouse, he's the hardest working person I know and a great provider. He's also the best dad, we have three young boys and they absolutely adore him. He can be out working all day and still come home with energy to wrestle and play with them. And he just teaches them so many useful life skills. And I really, really adore watching them learn from them.   Trevor Freeman  24:31 Awesome. That's great answer. Okay, so I mean, these are typically not topic relevant questions, but I'm going to slip one in here as part of our rapid fire section. What is an emerging technology or trend in the energy sector that you're most excited about and that you think will have a massive impact? Priscilla, why don't you start?   Priscilla Lacerda  24:51 So the trend of buying an electric vehicle in our daily lives is having a massive impact on how we need to prepare this system to absorb the growing demand for power in residential and commercial units. I think this will also have a huge impact on the environment too. Because electric cars batteries will need to be discarded or recycled once they reach their lifespan.   Trevor Freeman  25:15 Yeah, I think you're totally right EVs are kind of that first technology when we look at the energy transition, the one that's maybe the furthest along, there's others to come. But I think you're totally right. It's the one that really we're starting to see what some of the challenges and opportunities are for that. So great answer, Alana, what about you?   Alana Jones  25:34 Yeah, so an emerging technology I was recently introduced to a company that produces wireless inductive charging for vehicles. So if you can imagine, there are these charging pads, basically, they're placed in the ground, and your vehicle gets equipped with a receiver that when you drive over these pads, charging is engaged, there's no need for wires or plugs or even to step out of your vehicle for that matter. It just seems like a really great technology. And I'm really anxious to see if it will be in Ottawa anytime soon. If we'll be seeing that around.  Where do you see the applications for that? Is that like in parking garages? Or parking lots? Or is that something embedded in the road when you drive over it? Yeah, it is embedded in the road. So the company works with a few, they've already done these installations with a few other companies. One thing we're busing fleets. So they have these large buses that go in charge, instead of doing it at the depot, they can kind of go in their lane, and they're really fast charging, and things like that. So it's a good application for that for larger vehicles as well.   Trevor Freeman  26:33 It's definitely one of those sectors, or those areas that you know, some of the possibilities out there are pretty exciting to see about how we might, you know, envision our lives in the future. Makes you think of those, you know, articles or those magazines that say this is what life is going to be like in 2050. And imagine if we're all driving around charging our cars while we drive, I think that's pretty cool. Okay, well, thank you both for joining me today. It's been really great getting to know you and hearing a little bit more about what you do and how you got to where you are. I'm really excited for you both as you continue to chart your career paths and decide, you know, where your interests and your passions lie and kind of follow that. But really, I'm glad we've got smart folks like you who are going to be helping us shape the future of energy, maybe chasing down those roads that charge our cars. So thanks very much for joining me. I really appreciate it.   Alana Jones  27:21 Thanks, Trevor. I appreciate you having us on the show.   Priscilla Lacerda  27:24 Yeah, thank you very much. It was awesome.   Trevor Freeman  27:26 Great. Thanks, guys. To everyone else out there. Thanks for listening, and we'll chat next time. Thanks for tuning in to another episode of the thinkenergy podcast. Don't forget to subscribe wherever you listen to podcasts, and it would be great if you could leave us a review and really help us spread the word. As always, we would love to hear from you. Whether it's feedback, comments or an idea for a show or guests. You can always reach us at thinkenergy@hydroottawa.com  

Thinkenergy launched May 2019, with host Dan Séguin leading the charge to demystify the fast-changing world of energy. From helping Canadians better understand the sector to sharing insights from industry leaders and experts, Dan is a key reason why thinkenergy is the podcast for conversations around the future of energy. In his last episode as host, Dan passes the mic to Trevor Freeman, Supervisor, Key Accounts at Hydro Ottawa. Listen in as they share favourite episodes, what’s to come and more. Related links   Daniel Séguin on LinkedIn: https://www.linkedin.com/in/daniel-s%C3%A9guin-a29b4130/ Trevor Freeman on LinkedIn: https://www.linkedin.com/in/trevor-freeman-p-eng-cem-leed-ap-8b612114/ Hydro Ottawa: https://hydroottawa.com/en To subscribe using Apple Podcasts: https://podcasts.apple.com/us/podcast/thinkenergy/id1465129405   To subscribe using Spotify: https://open.spotify.com/show/7wFz7rdR8Gq3f2WOafjxpl   To subscribe on Libsyn: http://thinkenergy.libsyn.com/ --- Subscribe so you don't miss a video: https://www.youtube.com/user/hydroottawalimited   Follow along on Instagram: https://www.instagram.com/hydroottawa   Stay in the know on Facebook: https://www.facebook.com/HydroOttawa   Keep up with the posts on X: https://twitter.com/thinkenergypod --- Dan Seguin  00:06 This is thinkenergy, the podcast that helps you better understand the fast changing world of energy through conversations with game changers, industry leaders, and influencers. So join me, Dan Seguin, as I explore both traditional and unconventional facets of the energy industry. Hey, everyone, welcome back. Today's show is going to be a little different. This is a bittersweet episode of thick energy podcasts. Today marks the end of an era for me on this incredible journey through the world of energy. It's been an honor and a privilege to share stories, insights, and innovations with all of you these many years on the show. But as they say, all good things must come to an end. Today, I'm excited to introduce you to the new Captain steering this ship into the future, someone who is just as passionate and knowledgeable about the energy sector than I am, maybe a little more. So. Without further ado, please join me in welcoming your new host of the think energy podcast. Trevor Freeman. Trevor, welcome to the show.   Trevor Freeman  01:21 Thanks very much, Dan. And thanks for having me on and entrusting me with this project. I just want to start by recognizing all the hard work that you and your team have put into building thinkenergy into what it is today. It's a great community of listeners who are enthusiastic and curious about all things energy related. I've really enjoyed following along. And I'm thrilled to be joining the think energy team as we continue to explore this dynamic and ever changing world of energy at this really critical time in our industry.   Dan Seguin  01:50 Trevor, for our listeners, perhaps you can tell us about yourself, your expertise in the energy sector in short, what is your role now? And how did you get here?   Trevor Freeman  02:02 Sure. So I'm an environmental engineer who has been in the sustainability and energy field for about 14 years now. Right when I graduated out of university, I spent about four years working in international development and water and sanitation. But I'm coming back home to Canada I decided to explore this passion for sustainability and environmental improvement. And I made the shift to working in green building design and energy management. I worked in consulting and helping building owners primarily commercial real estate, improve their buildings, reduce energy consumption and costs, and incorporate sustainable thinking into their day to day business operations. I joined Hydro Ottawa about eight years ago now, first working on our conservation and demand management team, before making the jump over to our key accounts team, which I now lead. As the leader of the key accounts team, we support some of our largest commercial customers with all things related to energy, we're here to be their trusted advisors, whether that's routine questions or access to various services that Hydro Ottawa offers, or looking ahead, as more and more of our customers start to plan their own decarbonisation, or energy transition pathways. It's really a great role that helps my team and I really understand the needs and drivers of our customers, which are ultimately the end users of the energy that gets talked about on this podcast so often, that understanding helps Hydro Ottawa plan to meet the needs of those customers moving forward.   Dan Seguin  03:37 Okay, aside from fame and fortune, what drew you to take on this role of hosting the podcast?   Trevor Freeman  03:45 Well, I mean, since I can't talk about the first two, which are really the main drivers. In addition to being an engineer, I'm actually really passionate about communicating complex items. I know the term 'good communication' is not always associated with engineers, and I'm allowed to make that joke. But I really do enjoy having, you know, those tough conversations about complex and technical topics, whether that's how the grid works, to the changing landscape and technologies associated with energy to simply how does your electricity bill work? Or how does a building mechanical system work? I really enjoy having those conversations. And this seems like a great opportunity. So that plus seeing all the great conversations you've been able to have over the past years, with some really fantastic folks who are doing really great things, made it an easy decision to step into the role when the opportunity arose.   Dan Seguin  04:37 Very cool, Trevor, sorry, but I'm gonna put you on the spot here. Do you have any favorite episodes of rhe thinkenergy podcast that resonate with you?   Trevor Freeman  04:48 Sure. I'm actually going to cheat here, Dan, and give you three but I promise I'll be quick. So the first one is an episode that you did about residential heat pumps, with our mutual colleague Sean Carr. So I'm a little bit biased in this one because not only do I know Shawn story very well, but I actually went through my own heat pump journey about four years ago when I installed the hybrid heating system and my own house. And I think the more we talk about the benefits and the challenges of electrifying home heating, the easier we make that step for everyone else, who's going to be doing it as well. The second one I'm going to pick is your interview with Hydro Ottawa's CEO, Bryce Conrad, about our own netzero ambitions as an organization. So folks can go back and listen for themselves. But as a member of the Hydro Ottawa team, I was really inspired by the ambition and the drive to be a leader, and commit to something bold and lofty, even though we don't necessarily have all the answers about exactly how we're going to get there. And finally, I really loved your conversation with Dr. Monica Gettinger about the conversation we need to have around the future of energy, specifically her Positive Energy Program. As someone who is really passionate about taking action around climate change. I'm all too aware that as much as we finally seem to be getting some consensus that climate change is indeed a problem, there's still a lot of polarizing views about how to address the issue and how fast to move. Dr. Gettinger's work on building consensus and having a constructive dialogue was really refreshing to hear and made me really optimistic about where we can go with this.   Dan Seguin  06:22 Cool. Okay, now, what excites you about the future of energy?   Trevor Freeman  06:28 Yeah, I think this is a really great time to be in the energy fields, things feel like they're changing rapidly. And it seems like we're on the cusp of a real evolution of how we power our lives and our society. Whether it's what kind of energy we use - clean energy versus emissions producing energy, where that energy comes from, you know, centrally produced versus distributed, and how much control over that energy, the end users. So that's the homes and the businesses have through things like self generation and storage and smart technology. And that's not even talking about how that smart technology and AI is going to impact all of the above. So above all, I think I'm really excited to be working in an industry. That's really one of the major tools we have as a society to combat climate change. Electricity, while not the only answer is a major avenue for decarbonisation, and I really love being a part of that.   Dan Seguin  07:28 Okay, Trevor, are there any topics or themes from your experience that you'd like to explore further on show? What can our listeners expect?   Trevor Freeman  07:38 Honestly, Dan, I hope it's more of the same as what you've been doing over these past years. So that's talking to smart folks who are doing really cool things in the energy industry, especially around decarbonisation, and the energy transition that includes helping demystify some of those more complex topics for our listeners, you know, how does this big machine that we call the electricity grid in the energy industry? How does that all work? And what does it mean for our consumers, and then getting into the weeds on the energy transition, whether that's specific technologies or policy ideas, or more likely a mix of the both because you really can never have one without the other?   Dan Seguin  08:16 Very cool. Thanks, Trevor.   Trevor Freeman  08:19 Thank you, Dan. So I think this is the part where I get to take over. Now your listeners will know that you've been sitting behind the microphone for a number of years now, but I don't think anybody has ever interviewed you. So let's take this opportunity to ask you a couple of questions. So first of all, I was thinking maybe you could take us back to the beginning and tell us what inspired you to start this podcast?   Dan Seguin  08:43 Well, our first podcast for those who don't remember, it was released in May of 2019. The topic was Microgeneration, wow! Ee explored the possibility, back then, of turning your home into your own virtual power plant. Now, the reason why we dove into podcasting was driven by the fact that we were looking for a product a platform that could help demystify maybe better understand the fast changing world of energy. We were looking for a product where we could maybe better shape the narrative, you know, by leveraging influencers and subject matter expert. It provided us with greater ability if you want to maximize the reach of the podcast, but also its amplification. Also, working with a captive audience like minded people, is much easier. Finally, another reason we gravitated to podcasting was to deal with info obesity, great term here, you know, cluster and noise on channels is constantly increasing and customer attention span is shrinking. So podcasts were convenient and very easy to consume. They're poor. audible. You can listen to them in a gym, drive to work or even on a plane. So it was a great choice for us to do and it worked very well. Now, if I look back five years, I think that podcasts have been extremely sticky. This long form content, basically had a great listen rate. And for us, I think we did good.   Trevor Freeman  10:24 Great. Thanks, Dan. I can tell already that I've got a lot to learn on the communication side of things and marketing what we do here. On the podcast, do you have a favorite moment or more than one from doing the show that you want to share a favorite episode or something that really stands out and encapsulates the essence of think energy?   Dan Seguin  10:45 So you're asking me to pick my favorite child? That's a tough one. Okay. Well, I think the one that comes into mind is the episode with a disaster volunteer from the Canadian Red Cross. As we all know, we've experienced a pandemic, a number of natural disasters in the last couple of years, devastating wind storms, tornadoes, hurricanes, freezing rain, forest fires and floods. And when disaster strikes, electricity supply is usually jeopardized. So during these large scale, emergencies, emergency response becomes critical. And in this interview, we explored what it's like to be a Canadian Red Cross volunteer with boots on the ground during a disaster. It's a very cool episode.   Trevor Freeman  11:36 Over the past number of years of doing this, what has been the most significant change or changes and developments in the energy sector that you've seen?   Dan Seguin  11:44 I think it's the acknowledgement of reducing our environmental footprint, the commitment to provide innovative sustainable solutions, things like achieving net zero operations. Also, climate change, coupled with the push for electrification is now driving a lot of innovation and change in our sector. What comes to mind is that greater push towards renewable energy, expanding access to EV infrastructure, as zero emission with public transit, there's a lot going on. And let's not forget the evolution of customers. They are no longer passive consumers of electricity, some of them are now becoming prosumers, managing, generating and selling their energy. So the energy landscape is in a constant flux. And it's going to be an exciting ride.   Trevor Freeman  12:40 So as I sit here, behind the microphone on this side of the desk, what advice do you have for me taking on this podcasts around that ever evolving world of energy?   Dan Seguin  12:50 This is not going to be long winded. Always make sure the content provides value for the audience. You must be audience driven. Be curious, and have fun. That's it.   Trevor Freeman  13:04 Perfect. Sounds easy. So Dan, as you step away from hosting, what comes next? Are we going to be competing for podcast listeners or what's in your future?   Dan Seguin  13:12 Not at all. I'll be spending a lot more time with my wife. I'm going to continue my karate journey. I'm going to master pickleball my word. I want to do bike rail trails across Canada in the US. And I'm looking forward to joining the ever growing generation of snowbirds in Florida. While renovating my condo in Naples and enjoying the beach.   Trevor Freeman  13:40 As long as you put some solar on that condo, Dan, I think that sounds like an awesome plan. So finally, just to wrap it all up again, our regular listeners will know that you have subjected your guests to some on the spot rapid fire questions. And again, I don't think you've ever answered them yourselves. So I think it's time that we get to hear what your answers to those questions would be. So are you ready?   Dan Seguin  14:03 I am.   Trevor Freeman  14:04 Here we go. What are you reading right now?   Dan Seguin  14:07 Right now I'm reading Forever Young by Dr. Gabrielle Lyon. It's a book on strategies for aging.   Trevor Freeman  14:13 Well, sounds appropriate given your coming retirement. So what would you name your boat if you had one? And do you have one?   Dan Seguin  14:21 I do not. I used to have a pontoon boat when I lived by the lake, but I would call it now, I think, Gilligan.   Trevor Freeman  14:29 Who is someone that you admire?   Dan Seguin  14:31 Hands down my life partner, my better half, France, my wife.   Trevor Freeman  14:35 I know that if I'd have asked you to name two people, I would have been number two.   Dan Seguin  14:38 Oh, absolutely.   Trevor Freeman  14:39 I know that like many of us, you are probably guilty of watching a lot more Netflix and streaming platforms over the last number of years. So what's your favorite movie or show?   Dan Seguin  14:49 Okay, well, the best Netflix series hands down is Peaky Blinders. And for me the best movies I'll go with three. The Godfather, Memento and Lock Stock and Two Smoking Barrels.   15:03 Well Dan, I think we've reached the end of this transition episode of the thinkenergy podcast. Thanks again for pulling me in and then trusting this with me. And thanks for sharing a little bit about your life with us today.   Dan Seguin  15:16 Very cool. Thank you very much.   Trevor Freeman  15:18 And finally, what excites you about the energy industry right now?   Dan Seguin  15:22 Well, I think I alluded to this earlier, I think what's exciting me is seeing how the electricity grid, how utilities across North America will cope with a millions of EVs should be interesting.   Trevor Freeman  15:36 You'll have to come back in Dan and check in on things in a year or two. And we've got it all figured out. No doubt. So Dan, I think that's it. I think we've reached the end of this transition episode of the thinkenergy podcast. Thanks again for having me on for entrusting this with me, and for sharing a little bit about your insights and your life with us on this episode.   Dan Seguin  15:58 Thank you, Trevor. There you have it, folks, thank you all for being part of this amazing community. And I look forward to tuning in now as a listener. From now on. This is Dan Seguinsigning off and passing the microphone over to Mr. Trevor Freeman.   Trevor Freeman  16:17 Thanks, Dan. It's been a pleasure.   Dan Seguin  16:20 Thanks for tuning in for another episode of The thinkenergy podcast. Don't forget to subscribe and leave us a review where ever you're listening. And to find out more about today's guests or previous episodes, visit thinkenergypodcast.com I hope you'll join us again next time as we spark even more conversations about the energy of tomorrow.  

Rewind episode: The pressure to tackle pollution and climate change is increasing, as countries worldwide are eliminating greenhouse gases and moving away from fossil fuels. This shift towards a cleaner future has a lot of moving parts, especially as it relates to cleaning Canada’s energy sector. Merran Smith, founder and Chief Innovation Officer at Clean Energy Canada, joins us to talk about whether Canada can affordably and realistically accelerate our clean energy transition to reach our net zero goals.   Related links LinkedIn, Merran Smith: https://www.linkedin.com/in/merran-smith-64603b63/  LinkedIn, Clean Energy Canada: https://www.linkedin.com/company/clean-energy-canada/ Clean Energy Canada: https://cleanenergycanada.org/   To subscribe using Apple Podcasts:  https://podcasts.apple.com/us/podcast/thinkenergy/id1465129405   To subscribe using Spotify: https://open.spotify.com/show/7wFz7rdR8Gq3f2WOafjxpl   To subscribe on Libsyn: http://thinkenergy.libsyn.com/ --- Subscribe so you don't miss a video: https://www.youtube.com/user/hydroottawalimited   Check out our cool pics on https://www.instagram.com/hydroottawa   More to Learn on https://www.facebook.com/HydroOttawa   Keep up with the posts on X: https://twitter.com/thinkenergypod ---- Trancript: Dan Seguin  00:06 This is thinkenergy, the podcast that helps you better understand the fast changing world of energy through conversations with game changers, industry leaders, and influencers. So join me, Dan Seguin, as I explore both traditional and unconventional facets of the energy industry. Hey, everyone, welcome back. Today, we're coming clean about what clean energy could look like in the near future. That's right. And with the help of our guests, we're going to define what clean energy means, specifically for Canada and the future of electricity. There is a rising pressure around the globe to transition away from fossil fuels, eliminate greenhouse gases, and challenge the status quo when it comes to pollution and tackling climate change. What does that mean for Canada and our place in a clean energy world? Obviously, there's a lot of moving parts when it comes to cleaning Canada's energy sector, particularly when it comes to transportation, and heating of our buildings. But there's more to it than just that. There's renewable energy, revamping and expanding the electricity grid and conserving energy. Not to mention innovation and technology that doesn't exist yet. That will all play a role in getting us to Canada's Net Zero targets. So here's today's big question. Can Canada affordably and realistically accelerate its transition to clean energy in time? Our guest today is Marren Smith, Founder and Chief Innovation Officer at Clean Energy Canada is a leading Think Tank, advancing clean energy and climate solutions. Marren has won numerous awards for her work and also serves as co chair of the BC government's Climate Solutions Council. Okay, Marren, let's kick things off by telling our listeners about yourself, your work, and what Clean Energy Canada is.   Marren Smith  02:23 Yeah, so I'll start with Clean Energy Canada, we're a think tank based at Simon Fraser University's Center for dialogue. And we focus on solutions to accelerate the transition to a clean energy economy. And so what do we actually do? You know, we do think tank things like analysis and policy advice. But what makes us really different is that one, we focus on the solutions, not the problems, all about solutions to we really like to bring together business industry unions, get everybody in the room and see if we can get consensus around the advice to governments so that they can move solutions forward faster. And thirdly, what we do is we do a lot of talking to Canadians about the energy transition, how it links to jobs, to a nick strong economy and more affordability. And so we think of ourselves actually as a do tank and not a think tank. And myself, I'm a fellow at Simon Fraser University, I founded Clean Energy Canada, I'm now moved on, I'm no longer the Executive Director. I'm the Chief Innovation Officer. And I had been asked over the years, in the last 10 years doing this work, to co chair a number of Climate and Energy advisory bodies for both the federal and British Columbia governments. And I think that's because I have a pretty long track record of bringing together unusual allies around solutions to environmental energy and economy problems. So that's a bit about me.   Dan Seguin  04:09 Now, I'm somewhat curious, how does Clean Energy Canada define clean energy? Is it in relation to zero emissions? Or is there more to it than that?   Marren Smith  04:22 Yeah, so for us, we talk about clean energy spanning both energy supply. So renewable electricity, for example, solar, wind, thermal, but also demand. And so our definition of clean energy includes, like, as I said, renewable electricity generation, but also energy storage, energy transmission, energy efficiency, and any of the technologies or services that decarbonize transportation buildings in these and other polluting parts of our economy. So we have a fairly large definition of clean energy. And you know it really, when you look at it, that is what energy is all about. It's not just about making the energy. It's about how you use it and the technology so that you can use it more efficiently.   Dan Seguin  05:18 Clean Energy Canada has been advocating for climate action since 2010; 12 years in what are three positive changes that have made the biggest impact in Canada? And what is one that has hindered success?   Marren Smith  05:37 Yeah, this is a great question. So the three positive changes that I see is, one, the cost of these clean energy technologies have dropped significantly. So the the solutions are cheaper. Secondly, is that we've really moved past the climate debate in Canada. And thirdly, is electric vehicles. And I just want to talk a bit about each of those if that's okay, so the costs of clean energy technologies, many people don't understand that. Over this last decade, the cost of solar has dropped yet again, it's dropped another 90%. Over those last decade, the cost of batteries, which are the heart of an electric vehicle have dropped about 90%, wind has dropped about 40%. And so, you know, a dozen years ago, clean energy Canada was talking about this is coming, we need to prepare Canada needs to be aware as an oil and gas producer, we need to be looking at this clean energy transition. But now, it's here, these technologies are ready for primetime. And the eccotemp economic opportunities are there to create jobs here in Canada around those clean energies. So that's significant. Um, the second one is I think we've all lived through and seen in the news, this debate about whether Canada should be acting on climate, whether it's real, whether Canada has any responsibility, whether it's feasible. And that's now become a real global conversation. And there's a clear message globally that we need to act now. And, you know, we've had over this last six years, federal government, with the leadership that's aligning with those global efforts to act on climate. And in fact, this federal government has created the first climate plan that Canada's had to meet our climate targets, and they're now really putting it into action. And so that's been a significant and positive shift that we're actually moving to action. And thirdly, is around electric vehicles. And, you know, I just have to say them specifically. Because, in my observation, they really show Canadians what the transition looks like. It kind of looks like what it used to be, you know, an electric vehicle and a gas fired vehicle, they look pretty similar. But people are seeing how much better they are that they are more affordable to drive, and especially the today's price of gas, you know, if you're plugging in and charging your car, you know, your Chevy Bolt and getting 400 kilometers for somewhere, you know, depending on where you live in Canada, five to ten dollars versus what it's costing to fill up your car that's significant. So electric vehicles and how fast they have come online, how we have seen, the manufacturers shift is to go from, we're resisting this to this as the future we want to be out in front and competing to be the ones who are going to be producing them. So that dramatic shift, it's really showing how we can link this decarbonisation climate action with the economy, that our industries can be successful and that we can really move forward towards netzero towards decarbonisation towards cleaner energies. And, you know, continue with a strong economy if we do at night, right if we act now. And I guess Lastly, about electric vehicles, it's for anybody who hasn't gotten in one yet, you really should, because they're pretty fun to drive. And that's what we want this energy transition to be. We want it to be make life better. And I think electric vehicles are just one way that people can see how, you know, once you get over the hurdle of purchasing one, it does make life better, cleaner air, more affordable to drive. Now, you asked the other question, what's hindered success? And I would say what's really hindered Canada's movement on all of this has been the debate and the governments that have really ripped up climate action or refused to move forward on climate action. And, you know, that's created uncertainty. So we've seen various governments in Ontario in Alberta, you know, federally across the country, I shouldn't just name those provinces, because across the country, governments who come in and who are not willing to take action on climate and really want to stick with the static quo. And that really creates a lot of uncertainty for business and doesn't drive the change. I'm really hopeful that we're not going to see that anymore. You know, now that we've seen this new inflation reduction act out of the United States, it is sending a clear signal that this is the biggest economic opportunity that there has been, you know, in this generation, absolutely. To drive and build this clean energy economy, they are investing heavily in it. And we're going to see in the United States, those kinds of investments happening all over the country, you know, in red states and blue states, blue collar workers are going to be you know, being employed in plants, white collar workers, rural urban, this, this is going to be a massive, massive growth for industries and the economy, in producing electricity producing batteries and producing all the component pieces towards them hydrogen, retrofitting buildings. So there is a huge boom coming. And I hope that in Canada, we actually see our government picking up on that as well and linking this decarbonisation with our economic strategy.   Dan Seguin  11:55 Marren, what do you mean when you state that the Clean Energy Transition is a once in a generation opportunity for Canada to build a resilient, growing and inclusive economy?   Marren Smith  12:10 Yeah, so we've just talked about how we're really seeing around the globe, you know, the United States, but we've been seeing this in the EU and the UK and China, this, you know, linking up their industrial strategy, their economic strategy, to their economic strategies. And so Canada really has what it takes to make this shift as well to, you know, take action on climate decarbonize and really shift from fossil fuels oriented economy to a clean energy or renewable energy economy. So we have the natural resources that are going to be needed, you know, those metals and minerals, for example, we're going to be needing that steel, that cobalt, that nickel to be building the transmission lines, the solar panels, and in particular, the batteries, which are really the heart of the clean energy system. So Canada has what it takes. And then secondly, we've got the clean electricity or grids about 83% clean or zero mission right now. We've got a skilled labor force. So that's what the opportunity is, it's going to be a massive effort for us to retool our existing industries and build some of these new industries. But we've got the potential to do it.   Dan Seguin  13:40 Next question. Now, what makes Canada well positioned to be a global clean energy leader?   Marren Smith  13:48 So Canada's got the natural resources that we talked about metals and minerals, forest products, agricultural products, we've got great solar and wind resources and a grid that's already at 3% zero emission. We have great potential for green hydrogen. And, you know, we've got great trading relationships with the US as well as Europe and Asia. So we are positioned to be creating clean energy and one of the things that we are uniquely positioned around our batteries. Batteries are going to be the heart of the energy system. So they're obviously the heart of the electric vehicle. But also, large scale batteries are going to be what backs up that intermittent or variable wind and solar and renewable energies, they're going to be a part of the system as well. And so Canada is the only country in the Western world. It's actually the only democratically elected country that has all the metals and minerals needed to produce batteries. So In addition, we've got the good clean electricity to actually manufacture those metals and minerals and turn them into, you know, refine them, turn them into cells and ultimately batteries. So we've got the key components there. And that one huge opportunity for Canada. And we're seeing you know, this federal government has been working with Ontario and Quebec and landing some significant battery company investments, you know, GM and Bay calm for this year, LG and still Lantus in Ontario. So that's I some of the key parts of why Canada is so well positioned to be a clean energy leader.   Dan Seguin  15:45 Next question for you. What are the strategies you employ to achieve your mission to accelerate Canada's transition to a renewably powered economy?   Marren Smith  15:56 Yeah, so one, I think that we work with businesses, industry unions, to understand what their needs are, you know, we're positioned at the Center for dialogue at Simon Fraser University. And so we use dialogue, bring people together, structure it so that we can have a deliberate conversation that gets us to advice for government. So that's one of the strategies we employ. A second one is, you know, we look around the world and we find out what policies are working elsewhere, what programs, what are other countries doing that's working? And what can we glean out of that, and use in the Canadian context, and feed that kind of information to governments and to industry about what they can do next? Because Kevin does not the only one doing this, and there's a lot of countries that are ahead of us on this. So let's learn from them, and Canadian eyes it. And then lastly, we really have an eye to bringing the public along with us in this conversation, ensuring that they understand the Clean Energy Transition exactly what does it mean, understand some of the policies when they get controversial? And understand what's in it for them? You know, and right now we're seeing a public that is got, you know, a lot of insecurity going on with the global state of affairs, the war in the Ukraine, you know, this energy prices escalating, there's a lot of misinformation going on. And so, actually having the public understand and see how they fit into the energy transition, and how it's going to make life better for them, is, I'd say, a very important part of the transition. And so we do what we can we actually study how to communicate with the public and study language, what works with them, what resonates and how to get the stories to them that are going to help them understand this energy transition, what they can do, and what they can support.   Dan Seguin  18:06 Marren wondering if you could unpack for our listeners, what are some of the ways clean energy Canada has contributed to our country's progress in the last year or two?   Marren Smith  18:19 Yeah, so we have been working hard over the last couple of years. And I'll tell you about some of the significant achievements that I think we've been part of making happen. So first is about electric vehicles, or zero emission vehicles, as they're called in some circles. We see these as a key part of the solution, and one that is getting ready for primetime. They're a key part of the solution, because one quarter of Canada's carbon pollution is from transportation. So we've got to tackle this and about half of it from passenger vehicles, half of it's from trucks and buses. And so we've been working on both sides of that equation. And one of the things that had become the barrier has been supply of cars. At this point, people want them and we're seeing the uptake of those cars, you know, double and triple year over year. And so how do you get the supply here and how you do that through a policy called the zero emission vehicle mandate that requires the automakers to sell them in, in Canada. And so that's one that we've been working on. We actually were successful in getting one in British Columbia. And you know, and I have to report to you that so far in 2022 17% of new car sales have been electric vehicles. So that just far outpaces what people predicted. I think we were trying to get to 10% by 2025. We've blown through that we've now increased our targets because clearly for Colombians are ready to buy them. And there's similar types of stats from Quebec, who also has a zero emission vehicle mandate. The challenge for the rest of the country, and you know, if you're in Ottawa, you're probably going and putting your name on the list. And it's multiple years, you might not even be able to get on the list anymore, because there just aren't any cars. And so we need a federal zero emission vehicle mandate that requires the companies to the automakers to sell electric vehicles in Canada, or they're penalized. So that's one thing that we've made good progress on and contributed to. One that I haven't talked much about, that I'll mention here is about the steel sector, the cement sector, these heavy industries that are also heavy polluters. And, you know, so that's another area we've been working on and looking for solutions. We're looking at, okay, much of this steel, cement, aluminum, it's all being used in the construction industry. So how do we get those who are building things and buying things to demand low carbon steel, low carbon cement, which will really help these industries put it'll push them to to decarbonize and so that program is called by clean. The biggest purchaser of steel and cement and, and these types of things in the country is the government and we've been working to get the government to commit to a bike clean policy. The really interesting thing is that the steel sector, the cement sector, the aluminum sector V, these sectors are really on board to decarbonizing, this is globally happening. We're seeing all of these industries recognize that they cannot be admitting the scale of pollution, they are right now they've got to reduce that carbon pollution get to net zero. And so, again, we're seeing progress on reducing emissions in that sector. And we're seeing, you know, the United States and Canada have actually said that they are going to work together on this bike lanes so that both countries are pushing that they will procure, they will only purchase low, lower carbon, steel, cement, etc, for building our hospital, roads, schools, and all those good things. So that's another one that I'd say we could say we've been involved with, and batteries, I've already talked about it. We've been involved in the batteries for the last few years, and bringing together that sector, from the mining sector, all the way up to battery producers and electric vehicle, you know, the automatic factoring companies like GM, and all the way to the recyclers, and working with government to get, you know, a battery strategy for Canada to really ensure that we lock in and land the most jobs and the most opportunities for Canadians across the country. And these would be jobs in different provinces and opportunities for different provinces, you know, rural urban jobs, etc. So it's a big opportunity, but Canada's got to act quickly if we really want to get the most benefits from it. And by the most benefits, I mean, we could be creating a quarter of a million jobs by 2030 in this sector, which would be good for the country and will help us as we're transitioning, you know, out of other job sectors.   Dan Seguin  23:36 Okay, Marren, are you able to expand on some of Clean Energy Canada's short term goals?   Marren Smith  23:44 Yeah. So I would say right now, our top short term goal is around public awareness and understanding how shifting to clean energy is going to help affordability for Canadians. I think this is critical and important, because you know, this electrification, people are very sensitive to the price of electricity and increasing costs of electricity. And so there's a piece of work to ship to understanding what your overall energy costs are. So as we move off of fossil fuels, that means you're not spending as much on gas anymore. You know, for your gas fired car, but your electricity bill is going to go up. As you shift off of the having gas to heat and cool your home and shifting to an electric heat pump, their electricity bills can go up. We did some research earlier this year. Report called the true cost looking at some of the top models of cars in Canada, what it costs to purchase one plus run it over eight years, and we'll probably talk a bit more about this letter later. So just to say having Canadians under stand that this shift, while it's gonna have some costs in the short term is a more affordable and a better option for Canadians.   Dan Seguin  25:11 You recently contributed to a white paper with Electric Mobility Canada, on how Canada can design an effective zero emission vehicle mandate. I'm curious, what are some of your recommendations?   Marren Smith  25:27 Yeah. So, I'd say trying to do this in a nutshell. So first of all, is accountability. So we need to ensure that automakers are accountable and keeping pace with demand. And we need to do that with legally binding annual sales requirements so that they have to sell X percent of cars that are electric, and that there's serious financial penalties for non compliance. And that's, that's really the nuts and bolts of a good zero emission vehicle mandate. There's a whole bunch of details in there. Some provinces, like you mentioned, Quebec, and BC, they already have one, so we just need to use this in provinces that don't have them. And then our other key aspect of the recommendations was speed, we need to really finalize this regulation next year, so that it takes effect with model year 2024. There's really no time to wait on this. And we can see the demand for cars is there. We really need to be able to get them into the hands of people right now while they want them.   Dan Seguin  26:37 Now, for my first follow up question, we all know that the lack of supply is a big issue when it comes to zero emission vehicle sales. What's driving that? Are automakers prioritizing other markets? Where they're required to sell more EVs?   Marren Smith  27:00 Yeah, well, that's exactly what we're seeing here. In Canada, the majority of the electric vehicles are going to British Columbia and Quebec, because they're required to sell them there. And, you know, they're going to other states in the United States that have similar types of mandates California at one, but there's a button doesn't down there. And so they're sending them where they need to, you know, in the past, they have been making more money selling, you know, SUVs, for example, those bigger, heavier cars are where they've been making most of their profits. And so they're trying to get rid of those in Canada while they can. But this world is accelerating so quickly. You know, I think once we get the zero emission vehicle mandate, that rules so that the automakers have to sell the cars, we're going to start seeing them arrive in Canada, and we've seen, you know, the Detroit three have all been doubling and tripling their commitment for how fast they're going to start getting cars going and coming off the line. And I think we're going to only see that accelerate in the future. So I'm hoping that, you know, it looks like the automakers are more and more committing to be producing the cars. So the next obstacle is going to be the supply chain and whether they can get the batteries and get the other materials to make them.   Dan Seguin  28:34 Okay, another follow up question for you, Marren. Are there provinces in Canada that get prioritized for EV over others for example, Quebec, or maybe BC?   Marren Smith  28:46 Yeah, absolutely. That's why there's there certain car makes and models that you can only get in BC and Quebec, and that will be related to the zero emission vehicle mandate, you know, they, they get, there's a stick and if they don't sell enough cars, they get penalized. So they make sure the cars are in BC and Quebec and that's really the best selling feature for why we need this to be a national program and have a federal zero emission vehicle mandate.   Dan Seguin  29:16 Now hand in hand with that, you convened a select group of industry stakeholders and other experts to develop a report on advancing the Canadian evey battery sector. What were some of the key takeaways from those consultations?   Marren Smith  29:34 Yeah, so the report we produced which you can find on our website at talks about this opportunity, and it is huge to produce batteries. We're talking upwards of 250,000 jobs by 2030 and $40 billion annually going to the Canadian revenues. So that's a great opportunity, but it's not going to happen without you. No creating a strategy to get there. And that is the top recommendation from this group of industry and other experts. The Canadian battery Task Force is what they're called, the top recommendation is we need to have a Canadian battery strategy, which is going to ensure that we target and focus the investment dollars in the right place, that we get the workforce setup. Because, you know, while we do have a great workforce in Canada, we're going to need more workers and with the right skills, and that we make sure that we get the infrastructure, we get the electricity, the clean electricity to the right places, and then we've got enough of it. You know, we've seen almost every battery Manor battery manufacturing plant, that set up so far, has mentioned the zero emission electricity that you can get in Canada. And that's one of the reasons why they chose to build in Canada. And these are big global companies that are choosing to land in Ontario and Quebec so far. And so we just, we need that kind of strategy to ensure that we can get the most out of this battery opportunity.   Dan Seguin  31:16 I like that. Okay. Let's move on. Can you tell us about your recent analysis that found electric vehicles are in fact cheaper, often by a lot than their gas counterpart? What models were you comparing and what factors were considered?   Marren Smith  31:38 Yeah, so we looked at some of the best selling cars in Canada. Things like the Chevy Bolt as the electric versus its gas counterpart, the Toyota Corolla, the Hyundai Kona versus the electric Kona, the Nissan LEAF versus the Honda Civic etcetera. So we did this for a number of the top selling cars, we looked at purchasing it, as well as operating it and maintaining it over an eight year period. And, you know, what we found is that in almost every case, you were saving money. And you know, we've had to update this because the price of gas has gone up so much. But the total costs savings are going electric range from 10 to $15,000, over eight years. That's significant savings. And, you know, as you talked about, you know, you notice that there's almost no maintenance costs for an electric vehicle. And that your cost of fueling is, you know, so much cheaper. And this was before gas was at $2, a leader. So roughly back the envelope, you know, those savings are going to jump in, for example, the Kona to about $18,000 or more, a lot of people don't understand how much more affordable an electric vehicle is. And they look at the sticker price of buying a new car. And that's what turns them away. At you know, so we're encouraging people to really understand, look at the long term. And we know that not everybody can go buy a new car, I didn't buy a new car ever in my life till I bought an electric vehicle. I always bought used cars. But the savings are significant. And of course, the added bonus is the you know, zero emissions, you're part of the solution and helping with climate change.   Dan Seguin  33:42 Okay, a follow up question here. Were there any expectations here?   Marren Smith  33:47 Yeah, so the Ford electric F-150. It was pretty close. Probably now if we did it with the the price or cost of gas now, you would actually be more affordable on the Ford F-150 We haven't gone back to it. The other thing to note on this is that electric vehicles are really holding their value. So if you're someone who likes to buy a new car and sell it in eight or so years, your electric vehicle used car sales are much higher than when you buy a new gas fire vehicle and then sell it off.   Dan Seguin  34:27 When it comes to the electricity grid Canada is 83% emission free and with lower electricity rates than many other countries. We seem to be in an enviable position. But in your report underneath it all. Your findings show that Canada may not be as prepared for a carbon neutral world, as we may think. Now, for the big question, why is that?   Marren Smith  34:55 Yeah, we are ahead. But it's not just about Getting from 83% zero emission to 100%. If that was the only challenge before us, you know, it would take some work, but that's extremely doable. But this energy transition is really the whole sale, reengineering of many of our supply chains, almost the entirety of the energy system that powers the economy, it's huge. And we are going to need to double the amount of electricity we produce by 2050, as we shift our cars or homes or businesses off of fossil fuels and onto the grid. So that's the main message of our report is, you know, we need we have great opportunity here. But we need to double the size of the grid so that we are able to plug our cars and our home heating and cooling and our industries into that zero emission grid.   Dan Seguin  35:53 Okay, follow up question here. What are four reasons Canada needs to achieve 100%? clean electricity supply? And what are some of your recommendations?   Marren Smith  36:06 Yeah. So, you know, first off, it's so that we can effectively combat climate change. And that's, you know, top reason why we're doing this, it's also going to diversify and strengthen Canada's economy. You know, as I said, companies are looking to be powered by zero emission electricity. We've seen those battery plants coming here, one of the reasons cited, and there's more opportunities as more of the the world's industries really focus on how are they going to be net zero, for example, we see Walmart and Amazon, those companies are looking for supply chains that are zero emission, they're counting their carbon, and that includes their transportation. So it's, it's about making Canada competitive and ensuring that we are an attractive place because we can power our economy and our communities with clean electricity. The third reason is around the potential for indigenous reconciliation efforts in clean energy ownership. I think this is a very exciting opportunity. There's already a lot of indigenous communities that own or are partners in clean energy, and we can expand that as this moves forward. And then lastly, is we started talking about affordability on this podcast. And, you know, once you get over the purchasing of the new technologies, it's really more affordable to be plugged into a zero emission grid. And that's going to create more certainty, more security around energy supply.   Dan Seguin  37:51 Marren, what are some of the other benefits to increasing Canada's clean electricity supply?   Marren Smith  37:58 So you know, one, we need clean electricity to meet our climate targets. Secondly, it's around affordability. This is going to help make energy more affordable for communities. And then another benefit. It's clean air, of course, you know, once you shift off of diesel buses, for example, to electric buses out of diesel trucks to electric trucks, you're really cleaning up air quality in cities in particular, but in all communities. And then there's another potential benefit. You know, Canada, most people don't know this, we actually export 8%, for electricity right now to America, that brings in $2.6 billion. And you know, the US has the same commitments around getting to 100% clean electricity grid by 2035. There's a lot dirtier than ours, they've got a lot of catching up to do. And there's a potential for Canada that has an enormous wealth of potential for renewable electricity across the country. Places like you know, Alberta and Saskatchewan have incredible solar resources. We have wind opportunities, you know, offshore onshore. So there's potential for us to be investing in clean electricity, not just for our own needs, but as a immensely valuable export that's going to be in demand in the United States. And then link to that economic opportunity is green hydrogen. We're hearing more about hydrogen can something that Europe's looking at shifting off of natural gas onto green hydrogen, which is made you know, with water getting split with electricity and turned into hydrogen so that's a good clean energy source and something that candidate could also be a leader in.   Dan Seguin  39:56 Okay, tough part is over. We always end our interviews with some rapid fire questions. We've got some for you. Are you ready?   Marren Smith  40:07 I am. I'm ready. Okay,   Dan Seguin  40:09 So for the first one, what are you reading right now?   Marren Smith  40:12 So I just read picked up a book that I read a number of years ago, The Hearts Invisible Theories by John Bowen. It takes place in Ireland in the starts in the 40s, and follows the life of the other boy, that a man as he's going through, really coming into his own and discovering himself, and it's just beautifully written really great book.   Dan Seguin  40:40 Okay. What would you name your boat if you had one? Or do you have one?   Marren Smith  40:45 Well, you know, I lived on one for 11 years. And that boat was called Potential, but I thought about this permanent name of boat. Right now. I might name it unplugged, you know, because it would be the the ticket to just taking off and, and having some fun.   Dan Seguin  41:03 Who is someone that you admire?   Marren Smith  41:06 Yeah, I don't know, if you've heard of Christiana Figueres she was, for a number of years, the United Nations UNFCCC, which was the framework on climate change in the UN, she was the executive secretary there, she is just a fantastic climate leader, she is always positive. She continues to be optimistic in spite of all the challenges in this world, and so it got a smile on her face while she continues to do this work.   Dan Seguin  41:43 Next question, what is the closest thing to real magic that you've witnessed?   Marren Smith  41:50 Maybe 15 years ago, I used to work up in what's called the Great Bear Rainforest off the coast of British Columbia, we're taking our group of people out to go see the place and experience it the beautiful ancient rainforest, an area the size of Ireland. And we were whalewatching, watching humpback whales, and they go around in a circle, and they blow their bubbles and make a net out of it. And then they all go down, and they come up in the middle. So there was four of them doing this and they come up in the middle, they make that net around a little school of fish, and they open their mouths and come up and and scoop up all the fish. And we were watching them do that. And then suddenly, I looked off this side of the boat, and there was all these little fish leaping out of the water. And suddenly, the whales picked up our boat and lifted it out of the water. And so it was just amazing. And there they were, then they just kind of sit around at the top, we could have just reached over and pat them. And then I was like, oh my god, I just I wonder if they're hurt. And as we sat there, they all sort of swam away. And they completely breached came out of the water from nose from tip to tail, you could see them all, they hadn't done this before, one after the other all for them. So you could see that they were just fine. And then they swam away.   Dan Seguin  43:24 Okay, moving on to the next one here. What has been the biggest challenge to you personally, since the pandemic began?   Marren Smith  43:32 Yeah, it's been this plethora of Zoom meeting staring at a screen hours after hour. And I'll tell you that I zipped out and got myself a stationary bike. And so during those zoom calls, everybody at first was laughing at me because I'd be kind of wiggling back and forth as I rode the bike slowly, just to keep myself going. And now all kinds of colleagues have now purchased stationary bikes as well.   Dan Seguin  44:09 Okay. We've all been watching a lot more Netflix and TV lately. What's your favorite movie or show right now?   Marren Smith  44:17 You know, a number of months ago, my family and I went to see The Last City with Sandra Bullock just like a ridiculous funny comedy and I was laughing out loud. And I was just like, you know, it was after the depths of COVID. It just felt great to laugh out loud at something that was just completely goofy and frivolous.   Dan Seguin  44:43 Lastly, what's exciting you about your industry right now?   Marren Smith  44:49 It's the potential for the speed of change. You know, things are moving quickly. And it's that things can move quickly now Technology is ready for primetime. public understands that we need to take climate action. And governments and business are really seeing that economic strategy is going, you know, is is so linked to climate action. They see them as one in the same decarbonisation is what the economic future looks like.   Dan Seguin  45:25 Well, Marren, we've reached the end of another episode of the thinkenergy podcast, if our listeners want to learn more about you and your organization, how could they connect?   Marren Smith  45:37 Yeah, you can find us at cleanenergycanada.org. And you can also sign up on that for the Clean Energy Review, which is an email we send out every Monday morning that I hear from people in all walks of life from CEOs and ministers to receptionists and friends who don't even work in this. It's got the top 10 upbeat, optimistic solution based stories of the week, you can scan it in two minutes, or you can click on things and dive into these things in more details.   Dan Seguin  46:11 Again, Marren, thank you so much for joining us today. I hope you had a lot of fun. Cheers.   Marren Smith  46:16 I do. Thanks a lot for having me.   Dan Seguin  46:19 Thanks for tuning in to another episode of the thinkenergy podcast. And don't forget to subscribe and leave us a review wherever you're listening. And to find out more about today's guests, or previous episodes, visit thinkenergypodcast.com. I hope you'll join us again next time as we spark even more conversations about the energy of tomorrow.